Suppose That in a Closed Economy GDP Is Equal to 11,000,taxes

question 173

Multiple Choice

Suppose that in a closed economy GDP is equal to 11,000,taxes are equal to 3500,consumption is equal to 6500,and government expenditures are equal to 2000.What is private saving?

• A) 0
• B) 500
• C) 1000
• D) 1500

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, reflected in a company's cash flow statement.

Financing Activities

Actions that result in changes in the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by an independent organization for global use.

Operating Activities

Day-to-day actions that are involved in running a business, such as sales, purchasing, and paying expenses, that affect the company's cash flow.