Quiz: The Spending Allocation Model

In 2010, total consumption in the US was around 10 trillion, investment was around 2 trillion, government expenditures was around 3 trillion, and the trade deficit was around 500 billion.

Note: For your answer, if you were to calculate 6/9 =.6666, you would enter: .67

What was the share of consumption in GDP? (Round to the hundredth place)

What was the share of investment in GDP? (Round to the hundredth place)

What was the share of government expenditures in GDP? (Round to the hundredth place)

What was the share of net exports in GDP? (Round to the hundredth place)

When the real interest rate in the US falls:

a) the exchange rate for dollars rises and net exports fall

b) the exchange rate for dollars rises and net exports rise

c) the exchange rate for dollars falls and net exports fall

d) the exchange rate for dollars falls and net exports rise