If Consumption Is $6 Billion, Investment Is $3 Billion, Government

question 6

Multiple Choice

If consumption is $6 billion, investment is $3 billion, government purchases are $1 billion, and GDP is $12 billion, then net exports must equal:

• A) $22 billion.
• B) $10 billion.
• C) $2 billion.
• D) $12 billion.

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Definitions:

Hydrolysis

A chemical reaction that involves the breaking of a bond in a molecule using water, commonly seen in the breakdown of biomolecules.

Nitriles

Organic compounds containing a cyano group (-C≡N) bonded to an alkyl group, known for their use in organic synthesis and as solvents.

Amides

Organic compounds characterized by a carbonyl group (C=O) attached to a nitrogen atom.

Lithium Aluminum Hydride

A powerful reducing agent used in organic chemistry for the reduction of aldehydes, ketones, and esters to alcohols.