Use the Following to Answer Questions

question 29

Multiple Choice

Use the following to answer questions :
Scenario: Open Economy S = I
In an open economy GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $1 trillion, and imports are $3 trillion.
-(Scenario: Open Economy S = I) Look at the scenario Open Economy S = I. How much is private saving?

• A)$4 trillion
• B)$2.5 trillion
• C)$3.5 trillion
• D)$1.5 trillion

---

Definitions:

Imports

Goods or services brought into a country from abroad for sale or use.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay, representing a measure of consumer benefit.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade.

Restrictions

Rules or limitations placed on activities, movements, or trade to control or regulate actions.