Use the Following Information Below to Answer the Following Question(s)

question 46

Multiple Choice

Use the following information below to answer the following question(s) : C = 800 + 0.65YD
I = 750
G = 1500
T = 900
-Refer to the information above. The equilibrium level of GDP for the above economy equals:

• A) 7043.
• B) 10033.
• C) 3013.
• D) 9043.
• E) 5063.

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Definitions:

Expected Return

The average of a probability distribution of all possible returns that an investment might generate.

Dividend Yield

A financial metric indicating the annual dividend payment of a company as a proportion of its share price.

Constant Growth

A model, often referred to as the Gordon Growth Model, that assumes a firm's dividends grow at a consistent rate indefinitely, used to evaluate the fair value of a stock.

Capital Gains Return

The profit realized from the sale of securities or investments which have increased in value over the time they were held.