Assume a Closed Economy

question 83

Multiple Choice

Assume a closed economy.If consumption spending is $6.2 trillion,investment spending is $2.5 trillion,net taxes are $1.5 trillion and total income is $11 trillion,how much must government purchases be?

• A) $2.3 trillion
• B) $0.8 trillion
• C) $3.3 trillion
• D) $7 trillion
• E) cannot be determined without more information

---

Definitions:

Negative Feelings

Emotions or sentiments characterized by a lack of positivity, which can include sadness, anger, and fear.

Television Ad

A segment produced to promote products, services, or ideas, broadcasted during television commercial breaks.

Specific Phobia

An intense, irrational fear of or aversion to a particular object or situation that provokes immediate anxiety and avoidance behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.