Suppose that in a given country in a given year,GNP equals $2000,investment expenditures equal $200,government expenditures equal $150,and the current account surplus equals $50.Consumption expenditures therefore equals
A) $1000.
B) $120.
C) $140.
D) $160.
E) $230.

Question

Quizplus · Accepted Answer

GNP = C + I + G + NX
where 
C = consumption expenditures
I = investment expenditures
G = government expenditures
NX = net exports (exports - imports) = current account balance

Substituting the given values:
$2000 = C + $200 + $150 + $50
$2000 = C + $400
C = $160

Therefore, the answer is D) $160.

Suppose That in a Given Country in a Given Year,GNP