The country of Elbia has a GDP of $2,000,consumption of $1,300,and government purchases of $400.Which of the following is equal to $300?
A)domestic investment
B)domestic investment plus net capital outflow
C)domestic investment minus net capital outflow
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The GDP equation is GDP = Consumption + Investment + Government Purchases + Net Exports. Given GDP = $2,000, Consumption = $1,300, and Government Purchases = $400, the remaining $300 must be the sum of domestic investment and net capital outflow.

The Country of Elbia Has a GDP of $2,000,consumption of $1,300,and