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:

Superordinate Goals

Objectives that are prioritized above individual goals, often used to unite conflicting parties towards a common cause.

Common Objectives

Goals or aims shared by a group of people or different entities that guide their collaborative efforts.

Power Balance

The distribution of influence or control among parties in a relationship or situation, affecting dynamics and outcomes.

Social Institutions

Structured systems and frameworks within society that govern the behavior and expectations of individuals.