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The Country of Freedonia Has a GDP of $2,100, Consumption

Question 176

Multiple Choice

The country of Freedonia has a GDP of $2,100, consumption of $1,200, and government purchases of $400. This implies that it has


A) domestic investment of $500.
B) domestic investment plus net capital outflow of $500.
C) domestic investment minus net capital outflow of $500.
D) None of the above is correct.

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