If an economy is in equilibrium when net taxes = $50 trillion,saving = $40 trillion,government purchases = $50 trillion,exports = $30 trillion,and imports = $10 trillion,then planned investment spending must equal
A)zero
B)$50
C)$10
D)$20
E)the answer is indeterminate

Question

Quizplus · Accepted Answer

In equilibrium, aggregate expenditure equals aggregate income. The equation is: C + I + G + (X - M) = C + S + T. Rearranging gives I = S + (T - G) + (M - X). Substituting the given values: I = $40 + ($50 - $50) + ($10 - $30) = $40 - $20 = $20 trillion.

If an Economy Is in Equilibrium When Net Taxes =