Net national savings (S=y-c-g) is realted to the balance on the CA in the following way (the current account identity):
a) national savngs (S)= the balance on the current account (CA) + gross domest product (gdp)- gross national expenditure (GNE)
b) national savings (S)= domestic investment (I)+ the balance on the current account (CA)
c) National savings (S)= domestic investment (I)- the balance on the current account (CA)
d) net national savings (s)+ the balance on the current account (CA)+ domestic investment (I)= gross domestic product
Ans: b) national savings (S)= domestic investment (I)+ the balance on the current account (CA)
You might also like to view...
Crops that are grown primarily to sell, rather than to consume, are referred to as
a. staples b. subsistence crops c. cash crops d. market crops e. none of the above
Assume the United States is currently running a current account deficit. The most effective way of eliminating this current account deficit would be to temporarily ________ government purchases and ________ the domestic money supply
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease