Consider a closed economy in which consumption is represented by
A) GDP equals $5,556, consumption equals $3,756, and the government runs a surplus of $1,111.
B) GDP equals $5,556, disposable income equals $4,444, and private saving of $889 equals investment.
C) GDP equals $5,556, disposable income equals $4,444, and private saving of $889 net of the government deficit of $1,111 equals investment.
D) GDP equals $5,556, consumption equals $3,756, but investment exceeds total saving.
E) none of the above.

Question

Quizplus · Accepted Answer

GDP equals $5,556, disposable income equals $4,444, and private saving of $889 net of the government deficit of $1,111 equals investment.

Consider a Closed Economy in Which Consumption Is Represented by