Which of the following is correct in an open economy?
A)S = I
B)S = NX + NCO
C)S = NCO
D)S = I + NCO

Name: Which of the following is correct in an open economy? A)S = I B)S = NX + NCO C)S = NCO D)S = I + NCO
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Question

Quizplus · Accepted Answer

In an open economy, national savings (S) is equal to domestic investment (I) plus net capital outflow (NCO), which is the difference between the amount of foreign assets purchased by domestic residents and the amount of domestic assets purchased by foreigners.

Which of the Following Is Correct in an Open Economy