In a small, closed economy, national income (gdp) is $350.00 million for the current month. individuals have spent $100.00 million on the consumption of goods and services. they have paid a total of $60.00 million in taxes, and the government has spent $75.00 million on goods and services this month. use this information and the national income identity to answer the questions.
1. how much is spent on investment in this economy? investment?
2. what is national saving in this economy?
3. how are investment and national saving related in an economy like this?
a. national saving equals investment. investment is a component of national saving.
b. national saving is always less than investment.
c. they are unrelated.

For example, the upper right cell shows that if expresso advertises and beantown doesn't advertise, expresso will make a profit of $15 million, and beantown will make a profit of $2 million. assume this is a simultaneous game and that expresso and beantown are both profit-maximizing firms. if expresso decides to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if expresso decides not to advertise, it will earn a profit of $ million if beantown advertises and a profit of $ million if beantown does not advertise. if beantown advertises, expresso makes a higher profit if it chooses . if beantown doesn't advertise, expresso makes a higher profit if it chooses . suppose that both firms start off not advertising. if the firms act independently, what strategies will they end up choosing? expresso will choose to advertise and beantown will choose not to advertise. expresso will choose not to advertise and beantown will choose to advertise. both firms will choose to advertise. both firms will choose not to advertise.