A Country Has Output of $600 Billion,consumption of $350 Billion,government

question 15

Multiple Choice

A country has output of $600 billion,consumption of $350 billion,government expenditures of $90 billion and investment of $60 billion.What is its supply of loanable funds?

• A)$160 billion
• B)$150 billion
• C)$60 billion
• D)$30 billion

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Definitions:

Compound Interest

The accumulation of money that builds over time in an investment or interest-bearing account as new interest is earned on previous interest that is not withdrawn.

Time-Value

The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Forgo

The act of giving up something, often as a sacrifice, in preference for something else considered to be of greater value.

Monetary

Relating to money or currency, typically involving the management, transfer, or creation of money.