From the national income identity in the United States,if NX

Question

From the national income identity in the United States,if NX < 0,this must equal:

Quizplus · Accepted Answer

NX, or net exports, is equal to exports minus imports. If NX < 0, then the United States is importing more goods and services than it is exporting. This means that there is a gap between investment and domestic savings that is being financed by borrowing from other countries. Therefore, the additional borrowing the United States does to finance the gap between investment and domestic savings is the correct choice.

From the National Income Identity in the United States,if NX