In an open economy, GDP is $12 trillion this year. Consumption is $8 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $1 trillion, and imports are $3 trillion. How much is the net capital inflow?

Question

Quizplus · Accepted Answer

Net capital inflow = exports - imports
Net capital inflow = $1 trillion - $3 trillion
Net capital inflow = -$2 trillion (negative sign indicates a net capital outflow) 
Therefore, the correct choice is B ($2 trillion).

In an Open Economy, GDP Is $12 Trillion This Year