(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:

Effective Annual Rate

A measure of interest that accounts for compounding over a year, giving a true reflection of the financial cost or return.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for all costs.

Interest

The cost of using borrowed money, paid by the borrower to the lender, typically expressed as a percentage of the principal sum per year.

Stated Rate

The annual interest rate of a bond or loan without adjusting for compounding or other factors, often differing from the effective rate or annual percentage rate (APR).