If S = -60 + 0

question 58

Multiple Choice

If S = -60 + 0.25Y and I_g = 60, where S is saving, I_g is gross investment, and Y is gross domestic product (GDP) , then the equilibrium level of GDP is:

• A)$200.
• B)$320.
• C)$360.
• D)$480.

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Definitions:

Investor

An individual or organization that allocates capital with the expectation of achieving a financial return.

Promissory Note

An economic tool comprising a formal pledge by one entity to give a specific amount of money to another, either upon request or at a predetermined future time.

Term Deposit

A type of financial account where money is deposited for a fixed period and a predetermined interest rate, offering higher interest rates than savings accounts but with restricted access to funds.

Simple Interest

A technique for computing interest in which the interest expense is calculated solely on the initial amount of the principal.