The income-expenditure identity says that
A)Y = C + S + T.
B)Y = C + I + G.
C)Y = C + I + G + NX.
D)Y = C + I + G + NX + CA.

Name: The income-expenditure identity says that A)Y = C + S + T. B)Y = C + I + G. C)Y = C + I + G + NX. D)Y = C + I + G + NX + CA.
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Question

Quizplus · Accepted Answer

The income-expenditure identity in an open economy is represented by Y = C + I + G + NX, where Y is national income, C is consumption, I is investment, G is government spending, and NX is net exports (exports minus imports).

The Income-Expenditure Identity Says That