If Y = C + I + G + (X - M) and Y = $190, C = $100, I = $50 and G = $50 then, in equilibrium, X - M must equal
A)-$20
B)-$10
C)$10
D)$20
E)$50

Name: If Y = C + I + G + (X - M) and Y = $190, C = $100, I = $50 and G = $50 then, in equilibrium, X - M must equal A)-$20 B)-$10 C)$10 D)$20 E)$50
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Quizplus · Accepted Answer

In equilibrium, Y = C + I + G + (X - M). Given Y = $190, C = $100, I = $50, and G = $50, we have $190 = $100 + $50 + $50 + (X - M). Solving for (X - M), we get (X - M) = $190 - $200 = -$10.