Consumption spending is 4.5 billion, gross private domestic investment is 3 billion, and government expenditures are 2 billion. If GDP is 14 billion, which of the following could be true regarding exports and imports in the economy?
A) Exports are 9 billion, and imports are 6 billion.
B) Exports are 15 billion, and imports are 10.5 billion.
C) Exports are 6 billion, and imports are 8.5 billion.
D) Exports are 4.5 billion, and imports are 2 billion.
Question 2
If one U.S. dollar could be exchanged for one Australian dollar in 1970, and one U.S. dollar can now be exchanged for 0.98 Australian dollars, which of the following is true?
A) The U.S. dollar gained value against the Australian dollar.
B) The Australian dollar lost value against the U.S. dollar.
C) The Australian dollar gained value against the U.S. dollar.
D) Both A and C are true.
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