In a small, closed economy, national income (GDP) is $750.00 million for the current year. Individuals have spent $300.00 million on the consumption of goods and services. They have paid a total of $250.00 million in taxes, and the government has spent $400.00 million on goods and services this year. Use this information and the national income identity to answer the questions.
1. How much does the economy spend oninvestment?
2. What is national saving in the economy?
3. How are investment and national savingrelated in an economy like this?