The Table Below Shows the Values of Various Economic Variables

question 216

Multiple Choice

The table below shows the values of various economic variables of a country during a particular year.

-Refer to the table above.If consumption expenditure increases to $200,000 in the next year,GDP will ________,all other variables remaining unchanged.

• A) increase to $367,000
• B) increase to $400,000
• C) fall to $367,000
• D) fall to $400,000

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially considered in terms of liquidity.

Project Value

The estimated financial value of a project, taking into account all potential revenues, costs, and risks involved.

Mutually Exclusive

Situations or options that cannot occur or be chosen at the same time; selecting one excludes the possibility of selecting the other.

Investment Decisions

The process of deciding where to allocate and commit financial and capital resources to optimize returns.