If Consumption Was 70 Per Cent of GDP and Investment

question 124

Multiple Choice

If consumption was 70 per cent of GDP and investment and government expenditure were both 18 Pre cent each, then we see that

• A)GDP can be over 100 per cent because it is "gross" rather than "net."
• B)exports must be more than imports.
• C)we must subtract depreciation from investment so that the components of GDP do not exceed .
• D)exports must be less than imports.
• E)the error is due to rounding.

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