In an open economy, national saving equals
A)domestic investment plus net capital outflow.
B)domestic investment minus net capital outflow.
C)domestic investment.
D)net capital outflow.

Question

Quizplus · Accepted Answer

In an open economy, national saving is equal to the sum of domestic investment and net capital outflow. This is because the savings in the economy can either be used for domestic investment or can be sent abroad as net capital outflow.

In an Open Economy, National Saving Equals