In an open economy, gross domestic product equals $2,460 billion, consumption expenditure equals $1,435 billion, government expenditure equals $325 billion, investment equals $560 billion, and net capital outflow equals $375 billion. What is national saving?

Question

Quizplus · Accepted Answer

National saving in an open economy can be calculated as the sum of private saving and government saving. It is also equal to investment plus net capital outflow. Using the given data: Investment ($560 billion) + Net capital outflow ($375 billion) = $935 billion.

In an Open Economy, Gross Domestic Product Equals $2,460 Billion