For an Open Economy, the Equation Y = C

question 33

Multiple Choice

For an open economy, the equation Y = C + I + G + NX is an identity. If we define national saving, S, as the total income in the economy that is left after paying for consumption and government purchases, then for an open economy, it is true that

• A)S = I.
• B)S = 0.
• C)I = S + NX.
• D)S = I + NX.

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Definitions:

Integrated Logistics Management

The coordination and integration of all logistics activities into a seamless process, from sourcing and production to delivery, to optimize efficiency and minimize costs.

Outbound-Related Factors

Conditions or elements that impact the shipping and handling of goods from a manufacturer or distributor to the end customer.

Inbound-Related Factors

Elements that influence the receiving side of operations, such as supplier performance, quality of materials, and logistics efficiency in the supply chain.

Final Consumer

The final consumer is the end user of a product or service who does not intend to sell the product or service but instead uses it for personal, household, or family purposes.