The Investment Function Intersects the Saving Schedule at an Interest

question 60

Multiple Choice

The investment function intersects the saving schedule at an interest rate of 8 percent and a level of investment of $1.5 trillion a year. If the consumption curve intersects the 45-degree reference line at $3 trillion, then

• A) the C + I curve will intersect the 45-degree reference line at $1.5 trillion.
• B) the C + I curve will intersect the 45-degree line at $1.8 trillion.
• C) the equilibrium level of real GDP is $3 trillion.
• D) the equilibrium level of real GDP is $4.5 trillion.

---

Definitions:

Mass Customization

Mass customization is a strategy that combines the efficiency of mass production with the flexibility of individual customization, allowing for personalized products at scale.

Work-study Grant

A form of financial aid awarded to students based on need, allowing them to work part-time jobs while attending school to help fund their education.

Health Fees

Charges or costs associated with medical services, treatments, or health-related activities.

Special Fees

Additional charges that may be applied for specific services, facilities, or considerations, beyond the base cost of a product or service.