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:

Fifteenth Amendment

An amendment to the United States Constitution, ratified in 1870, that prohibits the federal and state governments from denying a citizen the right to vote based on that citizen's "race, color, or previous condition of servitude."

Race

A socially constructed category of identification based on physical characteristics, ancestry, historical affiliations, or shared culture.

Vote

The act of expressing one's choice or opinion in a meeting or election.

Reconstruction Amendments

Refers to the 13th, 14th, and 15th amendments to the United States Constitution, adopted after the Civil War, which abolished slavery, granted citizenship rights, and gave voting rights to formerly enslaved individuals.