Scenario 26-2.Assume the following information for an imaginary,closed economy.
GDP = $5 trillion;consumption = $3.1 trillion;
government purchases = $0.7 trillion;and taxes = $0.9 trillion.
-Refer to Scenario 26-2.For this economy,investment amounts to
A)$0.4 trillion.
B)$2.1 trillion.
C)$1.7 trillion.
D)$1.2 trillion.

Question

Quizplus · Accepted Answer

Investment in a closed economy is calculated as GDP minus consumption minus government purchases. So, $5 trillion - $3.1 trillion - $0.7 trillion = $1.2 trillion.