Use the Following to Answer Questions

question 39

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 investment spending?

• A)$2 trillion
• B)$3 trillion
• C)$3.5 trillion
• D)$4 trillion

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Definitions:

Duress

Coercion or compulsion by threat or force, often affecting the validity of a contract.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Treasury Bills

Short-term debt obligations issued by the government to finance its operations, with maturities ranging from a few days to one year.

Mutual Mistake

A legal concept where both parties involved in an agreement have a misunderstanding regarding a critical fact of the agreement.