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    Exam 12: Open-Economy Macroeconomics: Basic Concepts
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    How Can One Derive the Identity That Saving Equals the Sum
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How Can One Derive the Identity That Saving Equals the Sum

Question 127

Question 127

Essay

How can one derive the identity that saving equals the sum of domestic investment and net capital outflow from the national income accounting identity?

Correct Answer:

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Start from the national income accountin...

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