Assume There Are No Prospective Investment Projects (I)that Will Yield $\begin{array}{l}\underline{r}&\underline{I} \\25\%&\$10\\20&15\\15&20\\10&25\\5&30\\0&35\end{array}$

Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more,but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent,an additional $5 billion between 15 and 20 percent,and so on.The investment demand curve for this economy is:

A)
$\begin{array}{l}\underline{r}&\underline{I} \\25\%&\$10\\20&15\\15&20\\10&25\\5&30\\0&35\end{array}$
B)
$\begin{array}{l}\underline{r}&\underline{I} \\25\%&\$10\\20&5\\15&10\\10&15\\5&20\\0&25\end{array}$
C)
$\begin{array}{l}\underline{r}&\underline{I} \\20\%&\$10\\15&20\\10&30\\5&40\\0&50\end{array}$
D)
$\begin{array}{l}\underline{r}&\underline{I} \\25\%&\$5\\20&10\\15&15\\10&20\\5&25\\0&30\end{array}$

Correct Answer:

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