In a small, closed economy national income (GDP) is $750.00 million for the current month. Individuals have spent S300.00 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 month. Use this information and the national income identity to answer the following questions.
1. How much does the economy spend on investment?
2. What is national saving in the economy?
3. How are investment and national saving related in an economy like this?