Use the Following to Answer Questions

question 364

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 the net capital inflow?

• A)$1 trillion
• B)$2 trillion
• C)$3 trillion
• D)$4 trillion

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Policymakers

Individuals or groups responsible for creating and implementing laws, regulations, or guidelines within an organization or government.

Milk Shortage

A situation in which the supply of milk is insufficient to meet the demand in a given market or area, often leading to increased prices.

Price Ceiling

A legal maximum price set by the government for a particular good or service to prevent prices from becoming too high.