The goods market equilibrium condition in an open economy shows that A)NX = S^{d - Id.} B)S^d = NX - I^d. C)S^d = I^d - NX. D)S^d = I^d.

Question

Quizplus · Accepted Answer

The goods market equilibrium condition in an open economy is represented by the equation NX = S - I, where NX stands for net exports, S for savings, and I for investment. Choice A, despite its complex notation, is the only one that aligns with this fundamental principle by suggesting a relationship between net exports (NX) and the difference between savings and investment, albeit in a convoluted notation.

The Goods Market Equilibrium Condition in an Open Economy Shows