Refer to the Tables of Information for a Private Closed

question 11

Multiple Choice

$$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Gross Domestic Product } & \text { Consumption } \\\hline \$ 100 & \$ 120 \\\hline 200 & 180 \\\hline 300 & 240 \\\hline 400 & 300 \\\hline 500 & 360 \\\hline\end{array}\\\\\begin{array} { | c | c | } \hline \text { Expected Rate of Return } & \text { Amount of Investment } \\\hline 25 \% & \$ 0 \\\hline 20 & 20 \\\hline 15 & 40 \\\hline 10 & 60 \\\hline 5 & 80 \\\hline\end{array}\end{array}$$ Refer to the tables of information for a private closed economy. If the real interest rate is 10 percent, the equilibrium GDP will be

• A) $100.
• B) $200.
• C) $300.
• D) $400.

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Definitions:

Benefit

An advantage, gain, or positive outcome derived from a specific action, decision, or product.

Satisfaction

A feeling of fulfillment or contentment that comes from achieving one's goals or meeting one's needs and desires.

Civilian Goods

Products and services intended for use by the general public rather than for military purposes.

Real Cost

The total cost of producing a good or service, including the opportunity cost of alternative uses of resources and inputs.