How Can One Derive the Identity That Saving Equals the Sum

question 127

Essay

How can one derive the identity that saving equals the sum of domestic investment and net capital outflow from the national income accounting identity?

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Definitions:

Autocrine Signaling

A form of cell signaling in which a cell produces and secretes a molecule that binds to receptors on the same cell, leading to a response.

Classical Endocrine Signaling

A method of cellular signaling wherein hormones are released by glands into the bloodstream and transported to target organs or tissues to elicit specific physiological responses.

Insulin-like Growth Factor

A protein with high similarity to insulin; it plays an important role in childhood growth and continues to have anabolic effects in adults.

Second Messenger

A substance inside a cell that acts as a signal molecule in response to an external stimulus, transmitting the message initiated by the first messenger.