The Data Below Are for a Private (No Government) Closed

question 51

Multiple Choice

The data below are for a private (no government) closed economy. All figures are in billions of dollars. Refer to the table above. If planned investment is $25 billion, the equilibrium level of GDP will be:

• A) $600 billion
• B) $620 billion
• C) $640 billion
• D) $660 billion

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Definitions:

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.

Bank Balance

The amount of money held in a bank account at a given moment.

Cash Account

An account that records all transactions involving cash, including receipts and payments.

Debit Balances

Balances in accounts that represent amounts spent or assets, as opposed to credits, which signify income or liabilities.