Which of the following correctly states the saving and investment equation in an open economy? A. I = S + NFI B. S + I = NFI C. S = I + NFI D. I minus S = NFI If national saving declines and domestic investment does not change, it must be true that net foreign investment has increased stayed the same decreased .
Business · High School · Thu Feb 04 2021
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The correct equation that states the saving and investment relationship in an open economy is C. S = I + NFI. This equation is derived from the national income accounts of an open economy. If national savings decline and domestic investment does not change, it must be true that net foreign investment has decreased.