The investment function intersects the saving schedule at an interest rate of 8 percent and a level of investment of $1.2 trillion a year. If the consumption curve intersects the 45-degree reference line at $3 trillion, then

A) the C + I curve will intersect the 45-degree reference line at $1.2 trillion.
B) the C + I curve will intersect the 45-degree line at $1.8 trillion.
C) the equilibrium level of real GDP is $1.8 trillion.
D) the equilibrium level of real GDP is $4.2 trillion.


D

Economics

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Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default

A) higher; higher B) lower; lower C) higher; lower D) lower; higher

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