Refer to the above 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 $100.
C)increase equilibrium GDP by $50.
D)decrease equilibrium GDP by $50.

Question

Refer to the above 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 $100. 
C)increase equilibrium GDP by $50. 
D)decrease equilibrium GDP by $50.

Quizplus · Accepted Answer

According to the information provided, a 3 percentage point decrease in the interest rate will result in a $100 increase in equilibrium GDP.

Refer to the Above Information