In an open economy:
A) Saving = Foreign saving + Net foreign investment
B) Saving = Domestic investment + Net foreign investment
C) Saving = Domestic saving + Foreign saving
D) Saving = Domestic saving + Net foreign investment

Question

Quizplus · Accepted Answer

In an open economy, saving is equal to domestic investment plus net foreign investment, reflecting the balance between domestic savings used for domestic investment and those used for foreign investment.

In an Open Economy