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Expected Rate of net profits Investment GDP Consumption 15% 0 $100 $100 12 40 200 160 9 80 300 220 6 120 400 280 3

Expected Rate of net profits Investment GDP Consumption 15% 0 $100 $100 12 40 200 160 9 80 300 220 6 120 400 280 3 160 500 340 0 200 600 400 Refer to the above information. In this economy a 3 percentage point decrease in the interest rate will: Multiple Choice increase equilibrium GDP by $100. increase equilibrium GDP by $200. increase equilibrium GDP by $50. decrease equilibrium GDP by $50

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