2. The net capital outflow is the excess of domestic saving over domestic investment.The trade balance is

Question:

2. The net capital outflow is the excess of domestic saving over domestic investment.The trade balance is the amount received for our net exports of goods and services.The national income accounts identity shows that the net capital outflow always equals the trade balance.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780716752370

5th Edition

Authors: N. Gregory Mankiw

Question Posted: