A not so simple econ question..?
I did a little research and got this far, getting stuck with the taxes and E.
help again anyone??
aggregiate demand formula including import/export.
e + c + i + g (ex-im)
e=aggregate demand
c=50
i=10
g=50
ex=30
im=30
VII_IX)
In economy "A" government spending is spending $50 billion, consumption is $100 billion, exports are $30 billion, imports are $30 billion, investment is $10 billion and taxes is $50 billion. Savings in economy "A" is..
A)$10 billion
B)$30 billion
C)$60 billion
D)$100 billion
E)none of the above
Answer:
-50+100 +30-30-10+50 = 90.
e)
Answer (a)
because savings equal 10 billion dollars(invetment) at a macro level.
Leakages must equal injections when the economy is in equilibrium therefore:
G+I+X = T+S+M
50+10+30 = 50+S+30
Savings must equal 10 (A)
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