Question

If a country's economic data shows private savings of $300 million, government spending of $350 million, tax revenue of $400 million, and a trade surplus of $75 million, then what does investment equal?A. $775 million
B. $475 million
C. $275 million
D. $700 million

Answer 1

Answer:

C) $275 million

Explanation:

investment = (private savings + tax revenue) - (government spending + trade surplus)

investment = ($300 million + $400 million) - ($350 million + $75 million)

investment = $700 million - $425 million = $275 million