Question

Sandeep Garg . Measurement of national income. Pg. no. 4.42 Q. 15 Part iv. Why are exports included while calculating saving and investment?

Answer 1

Basically there are two types of goods can be exported such as final goods and intermediate goods.

People can consume the final goods, but intermediate goods can be sold as a form of final goods.

So when you calculate the savings and investment, final goods can be your savings and intermediate goods can be considered as the investment.