$$\begin{array} { l } C = 40 + 0.8 Y \\I _ { g } = 40 \\X = 20 \\M = 30\end{array}$$

question 94

Multiple Choice

$$\begin{array} { l } C = 40 + 0.8 Y \\I _ { g } = 40 \\X = 20 \\M = 30\end{array}$$ (Advanced analysis) The equations give information for a private open economy. The letters $Y , C , I _ { g } , X$ and M stand for GDP, consumption, gross investment, exports, and imports, respectively. Figures are in
Billions of dollars. The equilibrium GDP (=Y) in the economy is

• A) $200.
• B) $245.
• C) $320.
• D) $350.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and disposal.

Present Value

The present value of a future amount of money or series of cash flows, assuming a certain return rate.