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    Macroeconomics Study Set 25
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    Exam 18: Macroeconomics in an Open Economy
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    Which of the Following Equations Is True in an Open
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Which of the Following Equations Is True in an Open

Question 256

Question 256

Multiple Choice

Which of the following equations is true in an open economy?


A) Private saving = net foreign investment + domestic investment.
B) Domestic saving = net capital flows.
C) Net exports = -Financial account balance.
D) Net exports = net foreign investment.

Correct Answer:

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