Suppose that in our economy: G = 1100,T = 900,S = 140,and NX = -90.How much of our final product is left for domestic firms to purchase for themselves?

Question

Quizplus · Accepted Answer

The final product left for domestic firms is calculated as: Y = C + I + G + NX. Given that S = I + (G - T) + NX, we can rearrange to find I = S - (G - T) - NX. Substituting the values, I = 140 - (1100 - 900) - (-90) = 30.

Suppose That in Our Economy: G = 1100,T = 900,S