In an open-economy Keynesian income model of the sort used in Chapter 24, at the equilibrium level of income,

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C) S + M + T = I + X + G is the correct equation representing the equilibrium in an open-economy Keynesian income model. This equation shows that at equilibrium, domestic savings (S) plus imports (M) plus taxes (T) equal domestic investment (I) plus exports (X) plus government spending (G). This reflects the balance between the sources and uses of funds in an economy, incorporating the impact of international trade and government activity.

In an Open-Economy Keynesian Income Model of the Sort Used