Which of the Following Equations Is True in an Open

question 256

Multiple Choice

Which of the following equations is true in an open economy?

• A)Private saving = net foreign investment + domestic investment.
• B)Domestic saving = net capital flows.
• C)Net exports = -Financial account balance.
• D)Net exports = net foreign investment.

---

Definitions:

Energy Efficiency

The strategy of using less energy to provide the same service or perform the same task, which helps in reducing energy waste and improving economic efficiency.

Photovoltaic Cells

Semiconductor devices that convert sunlight directly into electricity through the photovoltaic effect.

Greenhouse Emissions

Gases released into the Earth's atmosphere that trap heat, contributing to the greenhouse effect and global warming.

Small Hydropower

Hydroelectric power systems with a capacity of up to 10 megawatts that utilize flowing water to generate electricity.