Scenario 13-1. Assume the following information for an imaginary, closed economy. $$\begin{array} { l }
\text { GDP } = \$ 120,000 ; \text { consumption } = \$ 70,000 ; \text { private savng } = \$ 9,000 \text {; } \
\text { national saving } = \$ 12,000
\end{array}$$
-Refer to Scenario 13-1. For this economy, investment amounts to
A)$4,000.
B)$9,000.
C)$12,000.
D)$16,000.

Question

Scenario 13-1. Assume the following information for an imaginary, closed economy. $$\begin{array} { l } 
\text { GDP } = \$ 120,000 ; \text { consumption } = \$ 70,000 ; \text { private savng } = \$ 9,000 \text {; } \
\text { national saving } = \$ 12,000
\end{array}$$
-Refer to Scenario 13-1. For this economy, investment amounts to
A)$4,000.
B)$9,000.
C)$12,000.
D)$16,000.

Quizplus · Accepted Answer

In a closed economy, the national saving equals the investment. Thus, the investment in this economy is $12,000.

Scenario 13-1 -Refer to Scenario 13-1