The Country of Wiknam Has Net Capital Outflow of $1,000,government

question 200

Multiple Choice

The country of Wiknam has net capital outflow of $1,000,government purchases of $5,000 and consumption of $20,000.Which of the following is correct?

• A)If its domestic investment is $1,000,its GDP is $26,000.
• B)If its domestic investment is $2,000,its GDP is $28,000.
• C)If its domestic investment is $5,000,its GDP is $29,000.
• D)None of the above are correct.

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Definitions:

Savings

The portion of income that is not spent on consumption but rather set aside for future use or investment.

C

In programming, C is a high-level and general-purpose programming language that is widely used for system and application software, device drivers, and embedded firmware.

Disposable Income

Income available to an individual or household after deducting income taxes and other mandatory charges.

Inventory Investment

The purchase of goods and materials for the purpose of storing them for future sale or use in production.