Answer the Question Below on the Basis of the Following

question 156

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.The data suggest that:

• A) the interest rate and the equilibrium GDP are directly related.
• B) the interest rate and the equilibrium GDP are inversely related.
• C) the interest rate and the equilibrium GDP are unrelated.
• D) as the interest rate falls,investment also falls.

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