Assume That GDP = 4,800, Consumption = 3,400, Private Domestic

question 36

Multiple Choice

Assume that GDP = 4,800, consumption = 3,400, private domestic savings = 400, government purchases = 1,200, and net exports = -120.Which of the following is true?

• A)disposable income is 3,800
• B)private domestic investment is 320
• C)the budget deficit is 200
• D)all of the above
• E)only A and C

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Definitions:

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the board of directors.

Cash Outflow

Money or value leaving a business, typically through expenses, purchases, or other financial activities.

Selling Equipment

The process of disposing of company-owned machinery or equipment, usually to generate cash or reduce assets.

Book Value

Cost of equipment less accumulated depreciation.