Which of the following is correct?
i. The private sector balance equals saving minus investment.
ii. Net exports is exports of goods and services plus imports of goods and services.
iii. Net exports equals the sum of the private sector balance plus the government sector balance.

Question

Quizplus · Accepted Answer

The private sector balance is indeed saving minus investment. Net exports is exports minus imports, not the sum of exports and imports. Net exports can be seen as the sum of the private sector balance and the government sector balance in the context of the national income identity.

Which of the Following Is Correct