If the quantity of financial capital supplied is equal to the quantity of financial capital demanded then, the national savings and investment identity is written as:
A. (M – X) – S = (G + T) – I
B. S + (M – X) = I + (G – T)
C. S + (G – T) = I – (X – M)
D. S = (X – M) – (G – T)
Answer:B
If the quantity of financial capital supplied is equal to the quantity of financial capital demanded then, the national savings and investment identity is written as:
A. (M – X) – S = (G + T) – I B. S + (M – X) = I + (G – T) C. S + (G – T) = I – (X – M) D. S = (X – M) – (G – T)
Explanation: Type: Multiple Choice