If Planned Aggregate Expenditures Are $225 Billion, Consumption Is $110

question 179

Multiple Choice

If planned aggregate expenditures are $225 billion, consumption is $110 billion, investment is $70 billion, government spending is $60 billion, there is a

• A) trade deficit of $240 billion.
• B) trade surplus of $15 billion.
• C) trade deficit of $15 billion.
• D) trade balance.

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Definitions:

Conditional Probability

The odds of an event taking place assuming another distinct event has occurred previously.

Joint Probability

The probability of two or more events happening at the same time, assuming there is some relationship between the events.

Complement Rule

A principle in probability theory stating that the probability of the complement of an event equals one minus the probability of the event itself.

Joint Probability

The probability of two events happening at the same time, represented as the intersection of the events in probability theory.