Which of the Following Equations Is Always Correct in an Open

question 68

Multiple Choice

Which of the following equations is always correct in an open economy?

• A)NX = Y - C - G - I
• B)NX = S - I
• C)NX = NCO
• D)All of the above are correct.

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Definitions:

Competitive Rate

Pricing that is on par or better than what is offered by competitors in the market, often used to attract customers.

Property Taxes

Levies imposed by local governments on real estate properties, calculated based on the value of the property.

Opportunity Costs

Sacrificing potential profits from other possibilities when a certain option is selected.

Equity Capital

Funds raised by a company in exchange for a share of ownership in the company, often through the sale of stock.