C = 40 + 0

question 71

Multiple Choice

C = 40 + 0.8Y Ig = 60 − 2i
I = 10
(Advanced analysis) The equations are for a private closed economy, where C is consumption, Y is the
Gross domestic product, Ig is gross investment, and i is the interest rate. The equilibrium level of GDP
In this economy is

• A) $240.
• B) $300.
• C) $360.
• D) $400.