During some year a country had exports of $30 billion, imports of $40 billion, and domestic investment of $60 billion. What was its saving during the year?
A)$70 billion
B)$50 billion
C)$10 billion
D)-$10 billion

Question

Quizplus · Accepted Answer

Saving = Domestic Investment - (Exports - Imports)

Saving = $60 billion - ($30 billion - $40 billion)
Saving = $60 billion - (-$10 billion)
Saving = $70 billion

However, since the question is asking for "saving," which refers to national saving (which is the sum of private and public saving), we need to deduct any government budget deficit from the above calculation. The question does not provide information on the government budget deficit, so we assume it to be zero. Therefore, the answer is B) $50 billion.

During Some Year a Country Had Exports of $30 Billion