Suppose Output Is $1000 Billion,government Purchases Are $200 Billion,desired Consumption

question 117

Multiple Choice

Suppose output is $1000 billion,government purchases are $200 billion,desired consumption is $700 billion,and desired investment is $150 billion.Net foreign lending would be equal to

• A)-$150 billion.
• B)-$50 billion.
• C)$50 billion.
• D)$150 billion.

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Definitions:

Cash Flow

The complete inflow and outflow of cash and equivalent financial assets within a business framework.

Future Value Formula

A mathematical equation used to calculate the future value of an investment based on its current value, the interest rate, and the time period of the investment.

Compounded Monthly

The process where interest earned on an investment is added to the principal each month, with future interest then earned on the new total.

Semi-Annually

Describes an event or action that occurs twice a year, typically every six months.