Refer to the Information Provided in Table 24

question 309

Multiple Choice

Refer to the information provided in Table 24.6 below to answer the question(s) that follow.
Table 24.6
All Figures in Billions of Dollars
-Refer to Table 24.6. The economy is at the equilibrium level of output. If government spending increases to a level of $400 billion, the new equilibrium level of output is

• A) $2,100 billion.
• B) $5,400 billion.
• C) $6,040 billion.
• D) $6,600 billion.

---

Definitions:

Held-to-Maturity Bonds

Bonds that an issuer has the intent and ability to hold until a defined maturity date.

Accrued Interest

Interest that has been earned but not yet received in cash or recorded by the payee.

Interest Revenue

The income a company receives from its investments in interest-bearing accounts or other instruments.