Suppose GDP in this country is $1,330 million. Enter the amount for government purchases. National Income Account Value (Millions of dollars) Government Purchases ( G ) A. Taxes minus Transfer Payments ( T ) B. 455 Consumption ( C ) C. 700 Investment ( I ) 280

$350 million

Explanation:

the formula for calculating GDP is consumption + investment + government spending + net exports, since apparently this is a closed economy with no exports or imports, the formula should be:

GDP = C + I + G

GDP = $1,330 millionC = $700 millionI = $280 million

G = $1,330 - $700 - $280 = $350 million

The federal reserve took an expansionary approach during the crisis. this was done by expanding the money supply and boosting liquidity. this can be seen in the fed's actions of lending to banks, purchasing securities, and lowering the federal funds rate in order to lower overall interest rates. the fed's goal was to increase consumer spending and overall liquidity within the system, and they pursued this by expanding the supply of liquid money.