In an open economy, gross domestic product equals $1,850 billion, consumption expenditure equals $975 billion, government expenditure equals $225 billion, investment equals $500 billion, and net exports equals $150 billion. What is national savings?

Question

Quizplus · Accepted Answer

National savings equals investment minus net exports. Thus, national savings = $500 billion - $150 billion = $350 billion.

In an Open Economy, Gross Domestic Product Equals $1,850 Billion