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Suppose table 1 , below, shows the potential investment opportunities in an economy. Vse this intoremation to complete table 2 . a ) Determine the
Suppose table below, shows the potential investment opportunities in an economy. Vse this intoremation to complete table
a Determine the market rate of interest. How much lending will woor?So povints Mest shew work in tables to receive ANX credit?
b Why would the market rate of interest not ocoor at Explain why. points
e If interest rates are ABOVE the equitibriom rate, then at this e interest reate the supply of fands is relatively High Low and at this RTGt interest rate the domand tor fonds is relatively High Low therefore, a Shortage Sumplos ot tonds wists and interest rates will be forced higher lower, Temain onchanger bootuse points
d Explain why MORE funds are demanded when interest rates FAL. points
Table
tableProjecttableRate ofReturntableProjectCostA$
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