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The Table Shows a Private Closed Economy

Question 132

Multiple Choice

The table shows a private closed economy. All figures are in billions of dollars. The table shows a private closed economy. All figures are in billions of dollars. Refer to the table above. An increase in the real interest rate from 2% to 6% will: A) Decrease the equilibrium level of GDP by $200 billion B) Decrease the equilibrium level of GDP by $300 billion C) Decrease the equilibrium level of GDP by $400 billion D) Increase the equilibrium level of GDP by $400 billion Refer to the table above. An increase in the real interest rate from 2% to 6% will:


A) Decrease the equilibrium level of GDP by $200 billion
B) Decrease the equilibrium level of GDP by $300 billion
C) Decrease the equilibrium level of GDP by $400 billion
D) Increase the equilibrium level of GDP by $400 billion

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