In an Open Economy, Private Saving, S^P, Is Equal to

question 56

Multiple Choice

In an open economy, private saving, S^P, is equal to

• A) I - CA + (G - T).
• B) I + CA - (G - T).
• C) I + CA + (G - T).
• D) I - CA - (G - T).
• E) I + CA + (G + T).

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Definitions:

Import

Refers to the acquisition of goods or services from a foreign country for domestic use.

Export

The process of sending goods or services to another country for sale.

World Price

The international market price of a commodity or product, determined by global supply and demand forces.

Free Trade

The policy of allowing unrestricted import and export of goods between countries, without tariffs, quotas, or other restrictions.