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Cengage Brain My Home x Aplia: Student Question x G Aplia: Stud Questi x CD Understand H Th x /af/servlet/quiz? quiz action takeQuiz&quiz; probGuid Q4PLCOA801010000002af6a5f0040000&ctx; ctarasev-0099 Courses aplia.co 5. Saving and net flows of capital and goods In a closed economy, saving and investment must be equal, but this is not the case in an open economy. In the following problem, you will explore how saving and investment are connected to the international flow of capital and goods in an economy. Before delving into the relationship between these various components of an economy, you will be asked to recall some relationships between aggregate variables that will be useful in your analysis. Recall the components that make up GDP. National income (Y) equals total expenditure on the economy's output of goods and services. Thus, where d NX Also, national saving is the income of the nation that is left after paying for L. Therefore, national saving (S) is defined as: lds Y Plugging this into the original equation showing the various ging components of GDP results in the following relationship: tflow (NCO, also Now suppose that a country is experiencing a trade deficit. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: (greater than), (less than), or (equal to) Outcomes of a Trade Deficit Imports Net Exports C +I+G Investment Saving Net Capital Outflow S9:38 9:14 PM 10/4/2015

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Information is not completely provided. Drop down menu is not given.

The first two blanks have been answered for, the rest could not be figured out.

a) Y = C+I+G+(X-M)

b) S = Y-C

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