Question

suppose investment is $30 billion, exports are $20 billion, imports are $50 billion, government spending is $80 billion, and taxes are $60 billion. How much money is the household sector saving?
A. -10 billion
B. 80 billion
C. 60 billion
D. 10 billion
E. 20 billion
GPT 3.5
The household sector saving can be calculated by subtracting taxes from income and subtracting consumption from income.

Income = Exports + Investment + Government spending = $20 billion + $30 billion + $80 billion = $130 billion

Consumption = Government spending + Imports = $80 billion + $50 billion = $130 billion

Household saving = Income - Consumption - Taxes = $130 billion - $130 billion - $60 billion = $-60 billion

Therefore, the correct answer is A. -10 billion. The household sector is actually borrowing $10 billion in this scenario.

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