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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

What are the main components of the national savings and investment identity?

To determine

The two sides of the national savings and investment identity.

Explanation

The four components of the national savings and investment identity are savings, net export, investment by business, and government borrowing reduced by tax collected.

The saving of households is the component in which supply of finance money is reflected in the financial capital.

The net exports is the component in which the difference of import and export of goods and services is reflected and which gives picture of excess import over export i...

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