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SIZIF [17.4K]
3 years ago
7

In a small, closed economy, national income (GDP) is $400.00 million for the current year. Individuals have spent $150.00 millio

n on the consumption of goods and services. They have paid a total of $200.00 million in taxes, and the government has spent $150.00 million on goods and services this year. Use this information and the national income identity to answer the questions. How much is spent on investment in this economy
Business
1 answer:
emmasim [6.3K]3 years ago
3 0

Answer: $100 million

Explanation:

National Income (GDP) for a close nation is calculated as:

= Consumption + Investment + Government spending

Making investment the subject would give us:

Investment = GDP - Consumption - Government spending

= 400 - 150 - 150

= $100 million

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