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Answer :
Final answer:
The national saving of an economy with a GDP of $5 trillion, consumption of $3.1 trillion, government purchases of $0.7 trillion, and taxes of $0.9 trillion is calculated to be $1.2 trillion.
Explanation:
For an economy with a GDP of $5 trillion, consumption of $3.1 trillion, government purchases of $0.7 trillion, and taxes of $0.9 trillion, we can calculate national saving using the following formula:
National Saving = GDP - Consumption - Government Purchases + Taxes
By plugging in the values:
National Saving = $5 trillion - $3.1 trillion - $0.7 trillion + $0.9 trillion
National Saving = $2.1 trillion - $3.1 trillion + $0.9 trillion
National Saving = $1.2 trillion
Therefore, the correct answer is c. $1.2 trillion.
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Rewritten by : Jeany
