Suppose That GDP Is Equal to 1,000, National Saving Is

question 27

Multiple Choice

Suppose that GDP is equal to 1,000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal

• A)200.
• B)150.
• C)250.
• D)300.
• E)350.

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Definitions:

Cash Accounts

Cash accounts are financial accounts that keep track of cash transactions within an organization, including receipts, disbursements, and balances.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Reversing Entry

An entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.

Disposes

Acts of transferring ownership or getting rid of assets, including selling, discarding, or recycling them.