Which of the Following Is an Identity That Always Holds

question 210

Multiple Choice

Which of the following is an identity that always holds in an open economy?

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

---

Definitions:

Product Flow

The movement of goods from supplier to customer through various stages of production, storage, and distribution.

Funds Flow

The movement of money into and out of a company, showing how financial resources are allocated.

Cyclical

Describing fluctuations in economic activity, markets, or prices that occur in regular or predictable cycles, often related to changes in business or economic conditions.

Network

A connected system of individuals, devices, or organizations designed to distribute information or resources efficiently.