53) An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd = 3000 - 2000r+.10Y Id=1000-4000r where Y is output and r is the real interest rate. The real interest rate that clears the goods market is equal to A) 1.25%. B) 2.50%. C) 8.33%. D) 25.00%.

53) An economy has full-employment output of 5000. Government purchases are 1000. Desired consumption and desired investment are given by Cd = 3000 - 2000r+.10Y Id=1000-4000r where Y is output and r is the real interest rate. The real interest rate that clears the goods market is equal to A) 1.25%. B) 2.50%. C) 8.33%. D) 25.00%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

53) An economy has full-employment output of 5000. Government purchases are 1000. Desired
consumption and desired investment are given by
Cd = 3000 - 2000r+.10Y
Id = 1000 - 4000r
where y is output and r is the real interest rate. The real interest rate that clears the goods market
is equal to
A) 1.25%.
B) 2.50%.
C) 8.33%.
D) 25.00%.
Answer: C
Diff: 3
Type: MC
Page Ref: 119

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