(Advanced Analysis)Answer the Question on the Basis of the Following $\begin{array} { l } I _ { g } = \overline { I _ { g } } = 80 \\\mathrm {~S} = - 80 + 0.4 \mathrm { Y }\end{array}$

question 1

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following information for a private closed economy,where I_g is gross investment,S is saving,and Y is gross domestic product (GDP) . $\begin{array} { l } I _ { g } = \overline { I _ { g } } = 80 \\\mathrm {~S} = - 80 + 0.4 \mathrm { Y }\end{array}$ Refer to the information.In equilibrium saving will be:

• A) $40.
• B) $120.
• C) $60.
• D) $80.

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Definitions:

Legal Tender

The officially recognized form of money that must be accepted if offered in payment of a debt.

Federal Reserve Note

The official paper currency issued by the Federal Reserve in the United States, commonly known as the dollar.

Monetary System

The set of institutions and mechanisms by which a country manages its currency and money supply, often involving a central bank and various types of money.

Efficient Economy

An economic system in which resources are allocated in the most productive way, maximizing the output of goods and services.