When calculating gross national disposable income in an open economy, we adjust gross national expenditure by:
A) subtracting exports and adding back imports.
B) adding in net income earned from foreign sources, plus the trade balance, plus net unilateral transfers from abroad.
C) subtracting depreciation, payroll taxes, and indirect business taxes, while adding in subsidies.
D) taking out net factor income from abroad and subtracting net unilateral transfers.
Correct Answer:
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