In class, we learned that saving and investment in physical capital increase the capital per worker and increase labor productivity and derived the saving-investment spending identity to see how investment in physical capital is financed in an economy. Use the saving-investment identity to answer the question below. In an open economy, GDP is $13 trillion this year. Consumption is $9 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $3 trillion, and imports are $5 trillion. Since the national saving is [Select] capital inflow is [Select] spending in the economy will be [Select] . and the net the total investment

In class, we learned that saving and investment in physical capital increase the capital per worker and increase labor productivity and derived the saving-investment spending identity to see how investment in physical capital is financed in an economy. Use the saving-investment identity to answer the question below. In an open economy, GDP is $13 trillion this year. Consumption is $9 trillion, and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $3 trillion, and imports are $5 trillion. Since the national saving is [Select] capital inflow is [Select] spending in the economy will be [Select] . and the net the total investment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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