In a hypothetical economy, no investment projects are undertaken when the real interest rate is 6 percent or above, 10 projects worth $1 million each are undertaken when the real interest rate is 5 percent, and 10 more projects worth $1 million each are undertaken every time the real interest rate falls by 1percent until it reaches a value of zero. 

a. Draw a graph showing the investment demand curve. Plot 7 points in total using the line tool (investment demand curve) given below. 

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The investment demand curve can be plotted as follows When the real interest rat... View the full answer