If planned aggregate expenditures are $240 billion, consumption is $140 billion, investment is $70 billion, government spending is $50 billion, there is a

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Quizplus · Accepted Answer

Planned aggregate expenditures are the sum of consumption, investment, government spending, and net exports. Here, $140B (consumption) + $70B (investment) + $50B (government spending) = $260B. Since planned expenditures are $240B, net exports must be -$20B, indicating a trade deficit of $20 billion.

If Planned Aggregate Expenditures Are $240 Billion, Consumption Is $140