Open Economy S = I In an open economy suppose that GDP is $12 trillion. Consumpt

Question

Open Economy S = I
In an open economy suppose that GDP is $12 trillion.
Consumption is $8 trillion and government spending is $2 trillion.
Taxes are $0.5 trillion. Exports are $1 trillion and imports are $3 trillion.

4. How much is private saving?
A) $4 trillion
B) $2.5 trillion
C) $3.5 trillion
D) $1.5 trillion

5. What is the government budget balance?
A) a surplus of $1.5 trillion
B) a deficit of $1.5 trillion
C) a deficit of $0.5 trillion
D) a surplus of $3.5 trillion

6. How much is national saving?
A) $4 trillion
B) $3.5 trillion
C) $2 trillion
D) $5.5 trillion

Explanation / Answer

B) $2.5 trillion

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