Which of the Following Is the Formula for Investment in an Open

question 111

Multiple Choice

Which of the following is the formula for investment in an open economy?

• A)I = Y - C
• B)I = S
• C)I = S - NCO
• D)I = S + NX

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Definitions:

Normative Economic Statement

An opinion or judgment that reflects values or what ought to be, rather than factual claims about what is.

Social Security

A government program designed to provide financial support to individuals during retirement, disability, or upon the death of a primary wage earner.

Government

The system or group of people governing an organized community, often a state, including institutions that establish and enforce public policies and laws.

Normative Statements

Assertions that express opinions about what ought to be, involving values and ethical judgments, rather than empirical facts.