If national savings in an economy is equal to $50 billion,exports are $10 billion,imports are $5 billion,and net factor payments from abroad is -$2 billion,total investment will be
A)$74 billion.
B)$57 billion.
C)$45 billion.
D)$47 billion.

Question

Quizplus · Accepted Answer

Total investment is calculated as national savings plus net exports (exports minus imports) plus net factor payments from abroad. Here, it is $50 billion + ($10 billion - $5 billion) + (-$2 billion) = $47 billion.

If National Savings in an Economy Is Equal to $50