Assuming the Economy Was in Equilibrium,use the Following Information to Calculate

question 80

Multiple Choice

Assuming the economy was in equilibrium,use the following information to calculate the total value of leakages.
$$\begin{array} { | l | l | } \hline \text { Consumption Spending } & \$ 3.5 \text { tillian } \\\hline \text { Net Taxes } & \$ 2.7 \text { tillian } \\\hline \text { Hausehold Seving } & \$ 2.5 \text { tillian } \\\hline \text { Avestment Spenfing } & \$ 2.2 \text { tillian } \\\hline \text { Gavernment purchases } & \$ 3.0 \text { trillian } \\\hline\end{array}$$
Total leakages are

• A) $2.5 trillion
• B) $2.7 trillion
• C) $3.0 trillion
• D) $5.2 trillion
• E) $5.7 trillion

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Definitions:

Interest Rates

The cost of borrowing money or the return on investment capital, expressed as a percentage of the money borrowed or invested.

Loan

A borrowed sum of money that is expected to be paid back with interest.

Single Tax

A fiscal system proposing a single tax as the primary or sole source of public revenue, often associated with taxing land value.

Economic Rents

Earnings exceeding the minimum amount necessary to keep a factor of production in its current use, often associated with imperfect competition or unique resources.