Suppose the Economy Is Closed with National Saving of $3

question 93

Multiple Choice

Suppose the economy is closed with national saving of $3 trillion,consumption of $10 trillion,and government purchases of $4 trillion.What is GDP?

• A)$3 trillion
• B)$9 trillion
• C)$11 trillion
• D)$17 trillion

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Definitions:

Legally Sufficient Consideration

Consideration that is considered to be enough or adequate under the law for a contract to be binding.

Preexisting Duty

An obligation that one party already owes under the law or another agreement, which cannot serve as consideration for a new contract.

Cost of Doing Business

The total expenses incurred by a company in operating its business, including manufacturing, marketing, and administrative costs.

Adequacy of Consideration

The fairness of the value exchanged in a contract, ensuring that what is provided by each party is of comparable worth.