Suppose you own a successful food truck business in Portland, Oregon. After a few years of...

 

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Suppose you own a successful food truck business in Portland, Oregon. After a few years of operation, you decide to expand your business to other cities in Oregon. In order to start a new business, you would need to borrow $100,000 per city. The table below reports the estimated dollar return for five new locations. Store Expected return Bend $20,000 Eugene $16,000 Corvallis $12,000 Newport $8,000 Ashland $4,000 On the graph below, first use the point tool to plot the points in your investment demand curve based on the table above. The yaxis is the interest rate, and the xaxis is the dollar amount you would want to borrow to invest in more food trucks. Then, once you have plotted the points, use the line tool to draw your investment demand curve, connecting the top and bottom points (draw one continuous line, rather than multiple discrete segments). Demand for Loanable Funds Interest rate 32 30 28 26 24 22 20 18 16 14 12 10 6 4 ろ Borrowing (in $100,000) 13 12 2 Suppose you own a successful food truck business in Portland, Oregon. After a few years of operation, you decide to expand your business to other cities in Oregon. In order to start a new business, you would need to borrow $100,000 per city. The table below reports the estimated dollar return for five new locations. Store Expected return Bend $20,000 Eugene $16,000 Corvallis $12,000 Newport $8,000 Ashland $4,000 On the graph below, first use the point tool to plot the points in your investment demand curve based on the table above. The yaxis is the interest rate, and the xaxis is the dollar amount you would want to borrow to invest in more food trucks. Then, once you have plotted the points, use the line tool to draw your investment demand curve, connecting the top and bottom points (draw one continuous line, rather than multiple discrete segments). Demand for Loanable Funds Interest rate 32 30 28 26 24 22 20 18 16 14 12 10 6 4 ろ Borrowing (in $100,000) 13 12 2

Answer rating: 100% (QA)

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