Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following is an accurate verbal statement of the described relationship? a. i = 20-10L
b. i = 20-4L
c. i = 20 - 4l
d. i = 24 - 4l

c. i = 20 - 4l

Explanation:

Investment=0 when interest rate is 20%

And then there is an investment of 10 billion for each 4% decrease in interest rate

Thus a unit % decrease in interest rate is 2.5billion

Thus Interest rate = 20-0.4 Investment

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )

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