Suppose desired consumption is $10 billion and desired investment is $3 billion.If GDP is $25 billion and government purchases are $2 billion,the desired national saving is
A)$12 billion.
B)$15 billion.
C)$14 billion.
D)$13 billion.

Question

Quizplus · Accepted Answer

Desired national saving is calculated as GDP minus desired consumption minus government purchases. So, $25 billion - $10 billion - $2 billion = $13 billion.

Suppose Desired Consumption Is $10 Billion and Desired Investment Is