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:

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a period of time.

Average Increase

The mean amount added over a series of increments, often used to measure growth or inflation over time.

Income Yield

The annual income from an investment divided by the current price of the investment, often expressed as a percentage, indicating the return from dividend payments or interest.

Rental Property

Real estate that is leased or rented out to tenants.