In the open-economy macroeconomic model, the market for loanable funds identity can be written as Group...
In the open-economy macroeconomic model, the market for loanable funds identity can be written as
Group of answer choices
S = NCO
S = I + NCO
S + I = NCO
S = I
Homework Answers
In loanable funds market, the identity for a closed economy is written as:
S = I
where S = savings
I = Investment
However, in an open economy, the identity is written as:
S = I + NCO
where NCO = Net Capital Outflows
Hence, option 2nd S = I + NCO is correct
Add Answer to:
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