SA=−20 + 0.4Y

question 100

Multiple Choice

SA=−20 + 0.4Y
Ig = 25 − 3i
(Advanced analysis) The equations refer to a private closed economy, where S is saving, Ig is gross
Investment, i is the real interest rate, and Y is GDP. If the real interest rate is 5 (percent) , investment will
Be

• A) $10 and the equilibrium GDP will be $75.
• B) $15 and the equilibrium GDP will be $100.
• C) $10 and the equilibrium GDP will be $120.
• D) $15 and the equilibrium GDP will be $180.

---

Definitions:

Identification Requirements

The criteria or documents required to establish the identity of an individual or entity in legal or financial transactions.

Disclosure Requirements

Regulations or standards mandating the reveal of certain information by entities, ensuring transparency in financial reporting and governance.

Journal Adjustment

Entries made in the accounting journals to correct or update financial records.

Equity Recognition

The process of including equity investments in the financial statements of an investor, reflecting ownership interest in a company.