Scenario 26-3

question 52

Multiple Choice

Scenario 26-3.Assume the following information for an imaginary,open economy.
Consumption = $1,000;investment = $200;net exports = -$50;
taxes = $230;private saving = $225;and national saving = $150.
-Refer to Scenario 26-3.For this economy,government purchases amount to

• A)$330.
• B)$280.
• C)$305.
• D)$310.

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Definitions:

Predetermined Overhead

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a specific activity base.