Gross Domestic Product Consumption $100 $100 200 160 300 220 400 280 500 340 600 440 Expected Rate of Return Amount of Investment 15% $0 12 40 9 80 6 120 3 160 0 200 Refer to the tables of information for a private closed economy. If the real interest rate is 9 percent, the equilibrium GDP will be $500. $400. $600. $300.

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?