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:

George Ritzer

An American sociologist known for his work on consumerism, globalization, and the concept of McDonaldization, which analyzes the effects of capitalism and rationalization on society and culture.

Society

A large group of people sharing a common territory and culture, characterized by shared norms, values, and institutions.

Bureaucracy

An organizational system characterized by standardized procedures, hierarchical division of labor, and emphasis on formal written documentation.

Interpersonal Interactions

The exchanges and communications between people, which can be verbal or non-verbal, and influence relationships and social dynamics.