Use the Following to Answer Questions

question 159

Multiple Choice

Use the following to answer questions :
Scenario: A Small Economy
Suppose there is no trade and no government in a small economy. GDP is $25 trillion, and consumption spending is $18 trillion this year.
-(Scenario: A Small Economy) Look at the scenario A Small Economy. What is the level of investment spending?

• A)$18 trillion
• B)$7 trillion
• C)$25 trillion
• D)-$7 trillion

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Definitions:

Poverty

A state of financial instability where individuals or families lack sufficient income to meet basic needs such as food, shelter, and healthcare.

Income Disparities

The unequal distribution of income among different groups in society.

Wealth Disparities

Refers to the significant differences in wealth (assets and income) among different groups, often analyzed by race, ethnicity, or socioeconomic status.

Financial Institutions

Organizations that provide financial services, such as banks, credit unions, stockbrokers, and insurance companies.