The figure given below represents the leakages and injections in an economy.
Figure 10.2
In the figure:
I, I1: Investment;
G: Government spending;
EX, EX1: Exports;
T: Taxes; and
M: Imports.
-Refer to Figure 10.2. Suppose that I+G+EX equals $20 and the economy is in equilibrium. What is the amount of saving when T = $0 and M = $5 at the equilibrium level?

Question

The figure given below represents the leakages and injections in an economy.
Figure 10.2
  In the figure:
I, I1: Investment;
G: Government spending;
EX, EX1: Exports;
T: Taxes; and
M: Imports.
-Refer to Figure 10.2. Suppose that I+G+EX equals $20 and the economy is in equilibrium. What is the amount of saving when T = $0 and M = $5 at the equilibrium level?

Quizplus · Accepted Answer

Investment (I) + Government spending (G) + Exports (EX) = Leakages (Savings (S) + Taxes (T) + Imports (M))
$20 + 0 + $5 = S + $0 + $5
S = $20 - $5 
S = $15

The Figure Given Below Represents the Leakages and Injections in an Economy