An Open Economy Has GDP of $1,000 Billion, Consumption of $650

question 193

Multiple Choice

An open economy has GDP of $1,000 billion, consumption of $650 billion, government expenditures of $150 billion, and domestic investment of $40 billion. What is its demand for loanable funds?

• A)$40 billion
• B)$120 billion
• C)$160 billion
• D)$200 billion

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Definitions:

Cost Centers

Units or divisions within a business to which costs can be allocated for accounting and management purposes.

Divisional Manager

A divisional manager oversees a specific section or division within a larger organization, responsible for its performance, strategy, and management.

Corporate Executives

High-level managers or officers within a corporation responsible for making strategic decisions, guiding direction, and ensuring operations align with company goals.

Profit Centers

Divisions or branches of a business that are directly responsible for generating its income and are evaluated based on their profitability.