Refer to the Tables of Information for a Private Closed

question 40

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. The data suggest that

• A) the interest rate and the equilibrium GDP are directly related.
• B) the interest rate and the equilibrium GDP are inversely related.
• C) the interest rate and the equilibrium GDP are unrelated.
• D) as the interest rate falls, investment also falls.

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