Question

Scenario 22-2: Open Economy S = I In an open economy suppose that GDP is $12 trillion. Consumption is $8 trillion and government spending is $2 trillion. Taxes are $0.5 trillion. Exports are $1 trillion and imports are $3 trillion. Use Scenario 22-2. How much is national saving?

Answer 1

GDP= C+I+G+X-M

12=8+I+2+1-3

12=I+8

I=12-8

I=4

Because S=I

National savings= $4 Trillion

Step-by-step explanation: