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28 January, 23:05

In an open economy, gross domestic product equals $3,500 billion, consumption expenditure equals $2100 billion, government expenditure equals $400 billion, investment equals $800 billion, and net exports equals $200 billion. What is national savings? Group of answer choices

a.$200 billion

b.$600 billion

c.$800 billion

d.$1,000 billion

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Answers (1)
  1. 28 January, 23:25
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    option (d) $1,000 billion

    Explanation:

    Data provided in the question:

    Gross domestic product = $3,500 billion

    Consumption expenditure = $2,100 billion

    Government expenditure = $400 billion

    Investment = $800 billion

    Net exports = $200 billion

    Now,

    National savings

    = GDP - (Consumption expenditure + Government consumption)

    = $3,500 billion - ($2,100 billion + $400 billion)

    = $1,000 billion

    Hence,

    The answer is option (d) $1,000 billion
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