Scenario 26-2

question 44

Multiple Choice

Scenario 26-2.Assume the following information for an imaginary,closed economy.
GDP = $5 trillion;consumption = $3.1 trillion;
government purchases = $0.7 trillion;and taxes = $0.9 trillion.
-Refer to Scenario 26-2.Suppose,for this economy,the relationship between the real interest rate,r,and investment,I,is given by the equation I = 10.78 - 3.03r.(If,for example,r = 10,this means that the real interest rate is 10 percent. ) The equilibrium real interest rate for this economy is

• A)3.19 percent.
• B)3.00 percent.
• C)3.16 percent.
• D)7.14 percent.

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Definitions:

Social Class

Categorization of individuals or groups based on economic, cultural, or social status affecting their opportunities and lifestyle.

Occupation

A person's regular employment or profession which occupies their time and may define a part of their social identity.

Marital Status

A legally defined status that indicates whether an individual is unmarried, married, divorced, widowed, or separated.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits.