*A country’s current national savings and investment identity is expressed in algebraic terms as X – M = S + (G – T) – I. In this instance:
A. there is an inflow of capital investment from the rest of the world economy.
B. there is no connection from domestic savings and investment to the trade balance.
C. the trade balance is determined by performance of certain sectors of the economy.
D. private and public domestic savings are higher than domestic investment.
Answer:D
*A country’s current national savings and investment identity is expressed in algebraic terms as X – M = S + (G – T) – I. In this instance:
A. there is an inflow of capital investment from the rest of the world economy. B. there is no connection from domestic savings and investment to the trade balance. C. the trade balance is determined by performance of certain sectors of the economy. D. private and public domestic savings are higher than domestic investment.
Explanation: Type: Multiple Choice