(Advanced Analysis) the Table Gives Data for a Private Closed

question 38

Multiple Choice

$$\begin{array} { | c | c | c | } \hline G D P ( Y ) & \text { Consumption (C) } & \text { Investment (I) } \\\hline \$ 0 & \$ 60 & \$ 30 \\\hline 100 & 120 & 40 \\\hline 200 & 180 & 50 \\\hline 300 & 240 & 60 \\\hline 400 & 300 & 70 \\\hline 500 & 360 & 80 \\\hline\end{array}$$ (Advanced analysis) The table gives data for a private closed economy. The letters Y, C, S, and I are used to represent real GDP, consumption, saving, and investment, respectively. The equation
Representing the investment schedule for the economy is

• A) I = 0.3Y.
• B) I = 80 ? 0.3Y.
• C) I = 30 + 0.1Y.
• D) I = I0 = 30.

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Definitions:

Full-Employment Output

is the level of output that an economy can produce when operating at a full employment level, where all available labor and resources are being used efficiently.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering investors a relatively safe investment option compared to other securities.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans received from a country's central bank.

Reserve Requirement

This is a regulation set by central banks requiring banks to hold a certain percentage of deposits and notes in reserve, either in their vaults or on deposit with the central bank, as a precaution against bank runs.