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C = 40 + 0

Question 117

Multiple Choice

C = 40 + 0.8Y Ig = 60 − 2i
I = 10
(Advanced analysis) The equations are for a private closed economy, where C is consumption, Y is the
Gross domestic product, Ig is gross investment, and i is the interest rate. Given that the interest rate is
10 (percent) , the amount that businesses will want to invest will be


A) $58.
B) $60.
C) $40.
D) $20.

Correct Answer:

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