Question

GNI in an open economy is equal to

 A) GDP+(X - M )

 B) GDP+(X - M) + R - P

 C) GDP+(R - P )

 D) GDP + (X - M)

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Answer 1

Answer:

D) GDP + (X - M)

Explanation:

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Answer 2

Option A is the correct answer.

1. GNI in an open economy is equal to GDP+(X - M )
2. GNI is gross national income.
3. Open economy implies an economy which interacts with the rest of the world.
4. It can be calculated by

• adding income from from foreign countries (X)
• subtracting income to foreign countries (M)

       in the gross domestic product.