Question

Some one help me out with these questions please.

Use the following to answer question 5: Table: National Income Accounts Trillions GDP $15.9 11.3 Consumption Government spend16. You have an opportunity to pay $1,000 today and receive $1,200 a year from now. If the annual interest rate is 20%, the d

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Answer #1

Q1
Answer
GDP=C+I+G+NX
C=consumption
I=investment
G=govenment spending
NX=net export =export -import=2.2-2.7=-0.5

15.9=11.3+3+I+(-0.5)
I=15.9-13.8=2.1
the investment is $2.1 trillion

Option C
============
Q2
the interest on the investment =(FV/PV) -1
=(1200/1000)-1
=0.2
=20%
the opportunity cost is equal to the return on the investment so there is zero difference.
Option D


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