The Country of Freedonia Has a GDP of $4000, Consumption

question 4

Multiple Choice

The country of Freedonia has a GDP of $4000, consumption of $1500, and government purchases of $900. What does this situation imply?

• A) Investment is equal to -$1600.
• B) Investment plus net capital outflow is equal to $1600.
• C) Investment plus net exports is equal to $2400.
• D) Saving is equal to -$2400.

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