Answer the Question on the Basis of the Following Information

question 52

Multiple Choice

Answer the question on the basis of the following information for a private closed economy: $\begin{array}{l}\begin{array} { c c } \underline{\text { Gross Domestic Product } }& \underline{\text { Consumption } }\\\$100& \$ 100 \\200 & 160 \\300 & 220 \\400 & 280 \\500 & 340 \\600 & 440\end{array}\\\begin{array} { c c c } \underline{\text { Expected Rate of Return }} & \underline{\text { Amount of Investment }} \\15 \% & \$ 0 \\12 & 40 \\9 & 80 \\6 & 120 \\3 & 160 \\0 & 200\end{array}\end{array}$ Refer to the information.In this economy,a 3 percentage point decrease in the interest rate will:

• A) increase equilibrium GDP by $200.
• B) increase equilibrium GDP by $50.
• C) increase equilibrium GDP by $100.
• D) decrease equilibrium GDP by $50.

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Definitions:

Antipyretic

Drugs or substances used to reduce or prevent fever.

Analgesic

A type of medication used to reduce or eliminate pain.

Antibiotic

A substance used to kill or inhibit the growth of bacteria and other microorganisms.

Anticholinergic

Refers to substances that block the action of acetylcholine, a neurotransmitter, which can affect various bodily functions including muscle movement and bodily secretions.