Refer to the information provided in Figure 11.1 below to answer ...

[EY67]

Question 1

Ceteris paribus, when market interest rates ________, ________ investment projects are undertaken.

◦ decrease; more
◦ increase; more
◦ decrease; less
◦ increase; no

Question 2

Refer to the information provided in Figure 11.1 below to answer the question(s) that follow. 
NOTE: The MEI (marginal efficiency of investment) curve represents the demand for investment.








Refer to Figure 11.1. If the market rate of interest is 5%, this firm's investment will total

◦ $5,000.
◦ $8,000.
◦ $15,000.
◦ $27,000.

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