Refer to the Table below to answer the question. Item Amount Net taxes $23 Gover
ID: 1223721 • Letter: R
Question
Refer to the Table below to answer the question.
Item Amount
Net taxes $23
Government expenditure $20
Saving $15
Consumption $67
Investment $21
Exports $30
Calculate Imports of goods and services
Explanation / Answer
In an open economy:
Leakages = Injections
Savings + Net Taxes + Import = Investments + Govt. Expenditure + Exports
S + T + M = I + G + X
15 + 23 + M = 21 + 20 + 30
38 + M = 71
M = 71 - 38 = 33
Thus, Import = $33