The Table Shows a Private Closed Economy

question 132

Multiple Choice

The table shows a private closed economy. All figures are in billions of dollars. Refer to the table above. An increase in the real interest rate from 2% to 6% will:

• A) Decrease the equilibrium level of GDP by $200 billion
• B) Decrease the equilibrium level of GDP by $300 billion
• C) Decrease the equilibrium level of GDP by $400 billion
• D) Increase the equilibrium level of GDP by $400 billion

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Definitions:

Mikhail Gorbachev

The last leader of the Soviet Union, known for his policies of glasnost (openness) and perestroika (restructuring), which contributed to the end of the Cold War.

Boris Yeltsin

A Russian political figure who served as the first President of the Russian Federation from 1991 to 1999, overseeing the transition from Soviet rule.

Native American Organizations

Refer to various groups and entities formed to represent the interests, culture, and rights of Indigenous peoples in the United States.

Census Bureau

A government agency responsible for collecting, analyzing, and publishing statistical data about the population, economy, and society of a country.