Question
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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