Ig = 80

question 110

Multiple Choice

Ig = 80
SA=−80 + 0.4Y
(Advanced analysis) The equations refer to a private closed economy, where Ig is gross investment, S
Is saving, and Y is gross domestic product (GDP) . The equilibrium GDP will be

• A) $160.
• B) $400.
• C) $360.
• D) $480.