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The Country of Nemedia Does Not Trade with Any Other

Question 148

Multiple Choice

The country of Nemedia does not trade with any other country.Its GDP is $30 billion.Its government purchases $5 billion worth of goods and services each year,collects $7 billion in taxes,and provides $3 billion in transfer payments to households.Private saving in Nemedia is $5 billion.What is consumption and investment in Nemedia?


A) $18 billion and $5 billion
B) $21 billion and $4 billion
C) $13 billion and $7 billion
D) There is not enough information to answer the question.

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