In 2007,if the country of Moolah had consumption of $20 trillion,gross investment of $4 trillion,government purchases of $5 trillion,and GDP of $26 trillion,then net exports must have been
A)+ $3 trillion
B)+ $29 trillion
C)- $29 trillion
D)- $3 trillion
E)The question cannot be answered without knowing the amount of imports

Question

Quizplus · Accepted Answer

From the formula for calculating GDP: GDP = Consumption + Gross Investment + Government Purchases + Net Exports, we can rearrange the equation to solve for Net Exports:
Net Exports = GDP - Consumption - Gross Investment - Government Purchases
Net Exports = $26 trillion - $20 trillion - $4 trillion - $5 trillion
Net Exports = -$3 trillion (since the result is negative, it means that Moolah had a trade deficit, or imports exceeded exports, of $3 trillion)

In 2007,if the Country of Moolah Had Consumption of $20