The country of Growpaw does not trade with any other country.Its GDP is $17 billion.Its government purchases $4 billion worth of goods and services each year,collects $6 billion in taxes,and provides $1 billion in transfer payments to households.Private saving in Growpaw is $4 billion.For Growpaw,

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Quizplus · Accepted Answer

The GDP is $17 billion. Government spending is $4 billion, and net taxes (taxes minus transfers) are $5 billion. Private saving is $4 billion, so national saving (private saving plus government saving) is $5 billion. Therefore, investment is $5 billion. Consumption is GDP minus government spending minus investment, which is $17 billion - $4 billion - $5 billion = $8 billion.

The Country of Growpaw Does Not Trade with Any Other