Refer to the Tables of Information for a Private Closed

question 126

Multiple Choice

$$\begin{array}{l}\begin{array} { | c | c | } \hline \text { Gross Domestic Product } & \text { Consumption } \\\hline \$ 100 & \$ 100 \\\hline 200 & 160 \\\hline 300 & 220 \\\hline 400 & 280 \\\hline 500 & 340 \\\hline 600 & 440 \\\hline\end{array}\\\\\begin{array} { | c | c | } \hline \text { Expected Rate of Return } & \text { Amount of Investment } \\\hline 15 \% & \$ 0 \\\hline 12 & 40 \\\hline 9 & 80 \\\hline 6 & 120 \\\hline 3 & 160 \\\hline 0 & 200 \\\hline\end{array}\end{array}$$ Refer to the tables of information for a private closed economy. If the real interest rate is 9 percent, the equilibrium GDP will be

• A) $600.
• B) $500.
• C) $400.
• D) $300.

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