-Using the Data in the Above Table,suppose Imports Equals $250

question 106

Multiple Choice

$$\begin{array} { | l | c | } \hline{ \text { Item } } & \begin{array} { c } \text { Billions of } \\\text { dollars }\end{array} \\\hline \text { Exports of goods and services, } X & 500 \\\hline \text { Imports of goods and services, } M & \\\hline \text { Net taxes, } T & 750 \\\hline \text { Government expenditure, } G & \\\hline \text { Saving, } S & 1,000 \\\hline \text { Investment, } I & \\\hline\end{array}$$
-Using the data in the above table,suppose imports equals $250 billion and investment equals $1,000 billion.Hence government expenditure equals

• A) $1,000 billion.
• B) $750 billion.
• C) $500 billion.
• D) $250 billion.

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Definitions:

Objective Function

A mathematical formula used in optimization to define the goal that needs to be achieved, usually involving minimization or maximization.

Nonsmooth Optimization

An area of optimization dealing with problems that do not have continuous derivatives, often involving abrupt changes.

Fixed-Cost Problem

An issue in budgeting or economics where costs do not change with the level of production or activity.

Solver

A numerical optimization tool used to find the best solution or optimal value for a given mathematical model with constraints and objectives.