When a government records a trade surplus, the national savings and investment identity is written as:
A. S = (G – T) + (X – M) – I
B. S – (G – T) = I – (X – M)
C. S = I + (G – T) + (X – M)
D. S + (G – T) = I – (X – M)
Answer:C
When a government records a trade surplus, the national savings and investment identity is written as:
A. S = (G – T) + (X – M) – I B. S – (G – T) = I – (X – M) C. S = I + (G – T) + (X – M) D. S + (G – T) = I – (X – M)
Explanation: Type: Multiple Choice