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:

Expenses

Costs incurred by a business in the process of earning revenue, such as rent, salaries, and utilities, which are used to assess company profitability.

Revenue

The income generated from normal business operations, usually from the sale of goods and services.

Score Norming

A process in assessment and education to adjust scores on test forms that might be easier or harder than a standard, ensuring fairness and comparability across different test administrations.

Cutoff Test Scores

Threshold scores used to determine qualifications for academic programs, scholarships, or other opportunities based on standardized testing.