Answer to Question #68697 in Macroeconomics for Jennifer P.

Question

If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of private housing? (Assume a defense budget of $700 billion.)
Instructions: Enter your response rounded to one decimal place.

Answer 1

opportunity cost of federal defense spending=700000000000/150000=4666666.7 new houses