(Advanced Analysis)Answer the Question on the Basis of the Following

question 115

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following consumption and investment data for a private closed economy.Figures are in billions of dollars. C = 60 + .6Y
I = I₀ = 30
Refer to the data.In equilibrium,the level of consumption spending will be:

• A) 170.
• B) 270.
• C) 160.
• D) 195.

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Definitions:

Maturity Date

The specific date on which the principal amount of a financial instrument is to be paid back in full.

Bond Ratings

Evaluations of the credit quality and risk of default of a bond, issued by rating agencies, influencing interest rates and investor demand.

Financial Obligation

A legal responsibility to settle a debt or pay for a service or product that has been received.

Registered Securities

Securities with which the issuer or a transfer agent keeps a list of the names of owners. Dividends or interest payments are made to owners of record as of specified dates.