An Economy Has Full-Employment Output of 5000

question 77

Multiple Choice

An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by C^d = 3000 - 2000r + .10Y
I^d = 1000 - 4000r
Where Y is output and r is the real interest rate. The real interest rate that clears the good market is equal to

• A) 1.25%.
• B) 2.50%.
• C) 8.33%.
• D) 25.00%.

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Definitions:

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often involving delusions, hallucinations, and disordered thinking.

Catatonia

A neuropsychiatric behavioral syndrome characterized by abnormal movements and behaviors, often including mutism, rigidity, and stupor.

Positive Symptoms

Symptoms of mental disorders that include excess or distortion of normal functions, such as hallucinations or delusions.

Negative Symptoms

In psychology, especially in the context of schizophrenia, these refer to the absence of normal behaviors or feelings, such as social withdrawal or lack of emotion.