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kati45 [8]
3 years ago
7

Consumption spending is $4.5 billion, gross private domestic investment is $3 billion, and government expenditures are $2 billio

n. If GDP is $14 billion, which of the following could be true regarding exports and imports in the economy?
a) exports are $4.5 billion, and imports are $2 billion
b) exports are $6 billion, and imports are $8.5 billion
c) exports are $9 billion, and imports are $6 billion
d) exports are $15 billion, and imports are $10.5 billion
Business
1 answer:
masha68 [24]3 years ago
7 0

Answer:

exports are $15 billion, and imports are $10.5 billion

Explanation:

GDP is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP = Consumption + Investment spending + Government Spending + Net Export

14 billion = 4.5 billion + $3 billion + $2 billion + Net Export

Net Export = $4.5 billion

Net Export = export - import

Net Export is positive so it indicates that exports is greater than imports.

Going through the options, it is only option d that is equal to 4.5 and the export is greater than the import.

I hope my answer helps you

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now we can use the present value formula:

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