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(Advanced Analysis)Answer the Question on the Basis of the Following S=−20+0.4YIg=25−3i\begin{array} { l } S = - 20 + 0.4 Y \\I _ { g } = 25 - 3 i\end{array}

Question 160

Multiple Choice

(Advanced analysis) Answer the question on the basis of the following information for a private closed economy. S=−20+0.4YIg=25−3i\begin{array} { l } S = - 20 + 0.4 Y \\I _ { g } = 25 - 3 i\end{array} where S is saving,Ig is gross investment,i is the real interest rate,and Y is GDP. Refer to the information.If the real interest rate is 5 (percent) ,investment will be:


A) $10 and the equilibrium GDP will be $75.
B) $15 and the equilibrium GDP will be $100.
C) $10 and the equilibrium GDP will be $120.
D) $15 and the equilibrium GDP will be $180.

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