In a small, closed economy national income (GDP) is $250.00 million for the current quarter. Individuals have spent $150.00 million on the consumption of goods and services. They have paid a total of $25.00 million in taxes and the government has spent $25.00 million on goods and services this quarter. Use this information and the national income identity to answer the following questions.

1. How much does the economy spend on investment? Number million dollars
2. What is national saving in the economy? Number million dollars
3. How are investment and national saving related in an economy like this?

O National saving equals investment
O National saving is always less than investment.
O They are unrelated
O Investment is a component of national saving