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Assuming the economy was in equilibrium, use the following information to determine government purchases and the total amount of funds supplied in the loanable funds

Assuming the economy was in equilibrium, use the following information to determine government purchases and the total amount of funds supplied in the loanable funds market.

Consumption Spending (C)

$16.5 trillion

Taxes (T)

$4.0 trillion

Household Saving (SP)

$3.5 trillion

Investment Spending (I)

$_____ trillion

Government Purchases (G)

$4.0 trillion

Exports (X)

$3.0trillion

Imports (M)

$4.0trillion

(HINT:What did we learn about about GDP accounting and the flow of funds from Chapter 2 of the textbook?)

What is Investment?

Blank 1. Fill in the blank, read surrounding text.

Total Savings :

Blank 2. Fill in the blank, read surrounding text.

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