For an Open Economy, the Equation Y = C

question 33

Multiple Choice

For an open economy, the equation Y = C + I + G + NX is an identity. If we define national saving, S, as the total income in the economy that is left after paying for consumption and government purchases, then for an open economy, it is true that

• A)S = I.
• B)S = 0.
• C)I = S + NX.
• D)S = I + NX.

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Definitions:

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and without the use of verbal language.

Dissociative Fugue

An unusual mental health condition marked by temporary memory loss pertaining to one's own identity, including recollections, character traits, and other features that define a person's uniqueness.

Dissociative Disorder

A psychological condition characterized by a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Amnesia

A partial or complete loss of memory due to loss of consciousness, brain damage, or some psychological cause.