Suppose output is $35 billion,government purchases are $10 billion,desired consumption is $15 billion,and desired investment is $6 billion.Net foreign lending would be equal to
A)-$4 billion.
B)-$2 billion.
C)$2 billion.
D)$4 billion.

Question

Quizplus · Accepted Answer

Net foreign lending is calculated as output minus the sum of government purchases, desired consumption, and desired investment. Here, $35 billion - ($10 billion + $15 billion + $6 billion) = $4 billion.

Suppose Output Is $35 Billion,government Purchases Are $10 Billion,desired Consumption