Question

An open economy is one where
© Deficit financing is absent
b No expost activities
© No impost activities
Economy opened to the world​

Answer 1

ANSWER

Y = C + I + G + NX. Y − C − G = I + NX. Y − C − G is national saving S, which equals the sum of private saving, Y − T − C, and public saving, T − G, where T stands for taxes. ... This shows that economy's net exports must be equal to the difference between savings and investment.