The Table Given Below Shows the Levels of National Income

question 57

Multiple Choice

The table given below shows the levels of national income (Y) and the corresponding levels of saving (S) , investment (I) , export (X) , and import (M) of an open economy.
Table 10.2
$\begin{array}{l}\begin{array}{|c|c|c|c|c|c|}\hline \boldsymbol{Y} & \boldsymbol{S} & \boldsymbol{I} & \boldsymbol{G} & \boldsymbol{X} & \boldsymbol{M} \\\hline \$ 935 & -\$ 250 & \$ 320 & \$ 40 & \$ 170 & \$ 100 \\\$ 2,100 & \$ 0 & \$ 320 & \$ 140 & \$ 170 & \$ 130 \\\$ 3,320 & \$ 250 & \$ 320 & \$ 200 & \$ 200 & \$ 350 \\\$ 4,800 & \$ 375 & \$ 320 & \$ 240 & \$ 230 & \$ 415 \\\$ 5,230 & \$ 650 & \$ 320 & \$ 320 & \$ 250 & \$ 590 \\\$ 6,300 & \$ 825 & \$ 320 & \$ 340 & \$ 270 & \$ 610 \\\hline\end{array}\\\text { Taxes equal zero }\end{array}$
-Consider the economy described in Table 10.2. Calculate the level of consumption spending when the economy is in equilibrium.

• A) $4,425
• B) $4,010
• C) $4,050
• D) $5,175
• E) $4,800

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Definitions:

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, recorded on the right side of a ledger.

Accounts

Records that summarize and classify all financial transactions of a business, including assets, liabilities, equity, revenue, and expenses.

Debt Ratio

A ratio indicating a company’s leverage by comparing its total debt to its total assets.

Financial Condition

A description of an entity's financial status, assessing its ability to remain solvent and meet its obligations, based on its assets, liabilities, and equity.