Suppose Output Is $35 Billion,government Purchases Are $10 Billion,desired Consumption

question 3

Multiple Choice

Suppose output is $35 billion,government purchases are $10 billion,desired consumption is $15 billion,and net exports are $4 billion.Then desired investment equals

• A)$2 billion.
• B)$4 billion.
• C)$6 billion.
• D)$8 billion.

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Definitions:

Operating Expenses

Expenses that a company incurs during its normal business operations.

Cost of Goods Sold

Direct expenditures related to the production of a company's goods, comprising both materials and labor.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or debt repayment, rather than being paid out to shareholders.

Common Shares

Equity investments that represent ownership interests in a corporation, entitling holders to dividends and voting rights.