Consider the Following Information Describing a Closed Economy with No

question 40

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined.All dollar figures are in billions. TABLE 21-4 Refer to Table 21-4.At the equilibrium level of national income,desired saving ($billions) will be

• A)zero.
• B)$40.
• C)$70.
• D)$200.
• E)$240.

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Definitions:

Variance of Returns

A measure of the dispersion or spread of returns on an investment, indicating its volatility.

Investment

The practice of dispensing finances with the goal of making a profit or generating income.

Years

A unit of time equal to 365 days (or 366 days in a leap year) used to measure duration or age.

Total Dollar Return

The overall financial gain or loss on an investment, including capital gains, interest, dividends, and distributions, calculated in absolute dollar terms.