Assume that consumption spending is equal to $600, government spending is $100 billion, and GDP is $800 billion. If net exports are equal to zero, investment spending must be

A) $700 billion.
B) $600 billion.
C) $500 billion.
D) $100 billion.


D

Economics

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There are two conditions necessary for a consumer to maximize her utility. One is that the marginal utilities per dollar spent on each good and service consumed are equal. What is the other condition?

A) The prices of each good and service consumed must not be too high. B) Total spending on all goods and services must equal the amount available to be spent. C) The consumer must be satisfied with the choices she makes. D) The total spent on each good and service is the same.

Economics

The equity capital of a privately owned firm includes:

a. the owner's own dollars put into the firm. b. the cost of raw materials. c. the cost of labor resource used in production. d. economic rent only. e. the value added at each stage of production.

Economics

What happens to aggregate demand as the price level increases?

a. It increases. b. It decreases. c. It remains constant. d. It moves away from equilibrium.

Economics

Which of the following is said to occur when a firm lowers its price to limit the decline in the quantity sold during a period of recession?

A. Persistent dumping B. Predatory dumping C. Cyclical dumping D. Seasonal dumping

Economics