Question: Use the information in the following table to answer the next question. In the table, investment is in billions. (1) Interest (2) Investment (3) Investment

 Use the information in the following table to answer the next

Use the information in the following table to answer the next question. In the table, investment is in billions. (1) Interest (2) Investment (3) Investment Rate billions of (billions of dollars) dollars) 4% $100 $80 5 90 80 60 70 50 60 40 Suppose the Fed increases the interest rate from 5 percent to 7 percent. As a result of this increase in the interest rate, using column (2) investment will decrease by $20 billion. increase by $10 billion. decrease by $10 billion. increase by $20 billion

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