The country of Freedonia has a GDP of $2,100,consumption of $1,200,and government purchases of $400.This implies that it has
A)domestic investment of $500.
B)domestic investment plus net capital outflow of $500.
C)domestic investment - net capital outflow of $500.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The GDP equation is GDP = Consumption + Investment + Government Purchases + Net Exports. Given GDP = $2,100, Consumption = $1,200, and Government Purchases = $400, the remaining amount for Investment plus Net Exports (Net Capital Outflow) is $500.

The Country of Freedonia Has a GDP of $2,100,consumption of $1,200,and