Answer the Question Below on the Basis of the Following

question 174

Multiple Choice

Answer the question below on the basis of the following information for a private closed economy: $$\begin{array}{l}\begin{array} { c c } \underline{\text { Gross Domestic Product }} &\underline{ \text { Consumption }} \\\$100& \$ 120 \\200 & 180 \\300 & 240 \\400 & 300 \\500 & 360\end{array}\\\begin{array} { c c } \underline{\text { Expected Rate of Return }} &\underline{ \text { Amount of Investment }} \\ 25 \% & \$ 0 \\20 & 20 \\15 & 40 \\10 & 60 \\5 & 80\end{array}\end{array}$$ Refer to the information.If the real interest rate is 10 percent,the equilibrium GDP will be:

• A) $100.
• B) $200.
• C) $300.
• D) $400.

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Definitions:

Economic Growth

A growth in the economy's output of goods and services over a certain time frame, usually indicated by an upsurge in the real Gross Domestic Product.

U.S. Imports

Goods and services bought by residents of the United States from other countries, contributing to the country's total expenditures.

Trading Partners

Countries, organizations, or individuals that engage in trade with each other, exchanging goods, services, or financial instruments.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, leading to a negative balance of trade.