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Answer the Question on the Basis of the Following Data

Question 87

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Answer the question on the basis of the following data.All figures are in billions of dollars.  Gross Private Domestic Investment$46 Exports of the U.S. 9Disposable Income 190 Personal Saving 10Government Purchases 84 Net Foreign Factor Income 10 Consumption of Fixed Capital 52Dividends 13 Imports of the U.S.12Taxes on Production and Imports 22 Personal Taxes38Social Security Contributions 23 Statistical Discrepancy0\begin{array}{llcc} \text { Gross Private Domestic Investment} & \$46 \\ \text { Exports of the U.S. } &9\\ \text {Disposable Income } &190\\ \text { Personal Saving } &10\\ \text {Government Purchases } &84\\ \text { Net Foreign Factor Income } &10\\ \text { Consumption of Fixed Capital } &52 \\ \text {Dividends } &13\\ \text { Imports of the U.S.} &12\\ \text {Taxes on Production and Imports } &22\\ \text { Personal Taxes} &38\\ \text {Social Security Contributions } &23\\ \text { Statistical Discrepancy} &0\end{array}
The economy characterized by the data is:


A) experiencing inflation because disposable income exceeds personal income.
B) experiencing declining production capacity because net investment is negative.
C) in a depression because personal income exceeds disposable income.
D) experiencing expanding production capacity because net private domestic investment is positive.

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