Assume That Equilibrium GDP (Y) Is 5,000

question 10

Multiple Choice

Assume that equilibrium GDP (Y) is 5,000. Consumption is given by the equation C = 500 + 0.6Y. Investment (I) is given by the equation I = 2,000 - 100r, where r is the real interest rate in percent. No government exists. In this case, the equilibrium real interest rate is:

• A)2 percent.
• B)5 percent.
• C)10 percent.
• D)20 percent.

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Definitions:

Changing Tastes

Variations or shifts in consumer preferences and desires over time, which can affect market demand.

The Four Cs

A marketing model that focuses on consumer wants and needs: Customer Solution, Cost to the Customer, Convenience, and Communication.

Situation Assessment

A comprehensive analysis of the internal and external factors impacting an organization or project.

Conversions

The process of transforming potential leads or prospects into customers, typically measured as a ratio or percentage.