Assume That Equilibrium GDP (Y) Is 5,000

question 123

Multiple Choice

Assume that equilibrium GDP (Y) is 5,000. Consumption (C) is given by the equation C = 500 + 0.6(Y - T) . Taxes (T) are equal to 600. Government spending is equal to 1,000. Investment is given by the equation I = 2,160 - 100r, where r is the real interest rate in percent. In this case, the equilibrium real interest rate is:

• A) 5 percent.
• B) 8 percent.
• C) 10 percent.
• D) 13 percent.

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Definitions:

Flame Cells

Specialized excretory cells found in some flatworms, functioning in the removal of waste products from the body.

Flatworms

A group of invertebrates within the phylum Platyhelminthes, known for their flat bodies, and include species such as tapeworms and liver flukes.

Excretion

Elimination of metabolic wastes by an organism at exchange boundaries such as the plasma membrane of unicellular organisms and excretory tubules of multicellular animals.

Trichinella Worms

Parasitic roundworms that cause trichinosis, a disease that results from consuming undercooked meat containing cysts of the worm.