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Refer to the Tables of Information for a Private Closed

Question 67

Multiple Choice

 Gross Domestic Product  Consumption $100$100200160300220400280500340600440 Expected Rate of Return  Amount of Investment 15%$01240980612031600200\begin{array}{l}\begin{array} { | c | c | } \hline \text { Gross Domestic Product } & \text { Consumption } \\\hline \$ 100 & \$ 100 \\\hline 200 & 160 \\\hline 300 & 220 \\\hline 400 & 280 \\\hline 500 & 340 \\\hline 600 & 440 \\\hline\end{array}\\\\\begin{array} { | c | c | } \hline \text { Expected Rate of Return } & \text { Amount of Investment } \\\hline 15 \% & \$ 0 \\\hline 12 & 40 \\\hline 9 & 80 \\\hline 6 & 120 \\\hline 3 & 160 \\\hline 0 & 200 \\\hline\end{array}\end{array} Refer to the tables of information for a private closed economy. In this economy, a 3 percentage point decrease in the interest rate will


A) increase equilibrium GDP by $200.
B) increase equilibrium GDP by $50.
C) increase equilibrium GDP by $100.
D) decrease equilibrium GDP by $50.

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