For the next three questions, consider the economy of Economia, which has the following information (and no transfer payments):

• $8000 consumption
• $7000 government purchases
• $3000 economic investment
• Total GDP $18,500
• $900 exports

Carefully following all instructions,

A) calculate net exports for this economy.

B)calculate imports for this economy.

C)If households started buying more houses and firms started buying more assets used to produce things, what would happen to GDP, all else equal?

It would rise because C would rise.

It would fall because I would fall.

It would rise because I would rise.

It would fall because C would fall.