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the Above Table Gives Data for the Nation

question 27

Multiple Choice

$\begin{array}{rccc}\hline &\text { Consumption }&&\text { Government }\\\text { Real GDP, } Y &\text { expenditure, } C& \text { Investment, } I& \text { expenditure, } G\\\text { (billions of } & \text { (billions of } & \text { (billions of } & \text { (billions of } \\\text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) } & \text { 2005 dollars) }\\\hline15 & 6 & 5 & 5 \\20 & 10 & 5 & 5 \\25 & 14 & 5 & 5 \\30 & 18 & 5 & 5 \\35 & 22 & 5 & 5\\\hline\end{array}$
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The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Unplanned inventory changes are zero when real GDP equals

• A)$500 billion.
• B)$900 billion.
• C)$300 billion.
• D)$800 billion.
• E)$700 billion.

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Definitions:

Trading Floor

The physical location where financial trading activities take place, such as in a stock exchange.

Foreign Firm

A company that is incorporated under the laws of a country other than the one in which it does its main business.

Direct Quote

The value of foreign exchange quoted with the domestic currency for every unit of the overseas currency.

Reserve Currency

A foreign currency held in large amounts by governments and institutions as part of their foreign exchange reserves.