GDP is $10 million, consumer spending is $6 million, government spending is $3 million, exports are $2 million, and imports are $3 million. How much is spent for investments?
GDP is $10 million, consumer spending is $6 million, government spending is $3 million, exports are $2 million, and imports are $3 million. How much is spent for investments? Correct Answer $2 million
C —GDP = C + I + G + (X - M). This would mean that 10 = 6 + I + 3 + (2 - 3); therefore, I = $2 million.