How Can One Derive the Identity That Saving Equals the Sum

question 22

Essay

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

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Definitions:

Accession

The process by which personal property becomes the property of another, usually through improvement or addition.

Adverse Possession

A legal principle that allows a person to claim ownership of property if they have occupied it for a certain period of time without the permission of the original owner, under certain conditions.

Present Transfer

The act of transferring ownership or interest in property or an asset to another party immediately, without delay.

Concert Tickets

Prices for admission to a live performance of music.