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The Country of Freedonia Has a GDP of $4000, Consumption

Question 4

Multiple Choice

The country of Freedonia has a GDP of $4000, consumption of $1500, and government purchases of $900. What does this situation imply?


A) Investment is equal to -$1600.
B) Investment plus net capital outflow is equal to $1600.
C) Investment plus net exports is equal to $2400.
D) Saving is equal to -$2400.

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