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 howI saving and investment are connected to the international ow 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 C = consumption, I = investment, G = government purchases, X = exports, M = imports, and NX = net exports: Also, national saving is the income of the nation that is left after paying for V . Therefore, national saving [S] is dened as: Rearranging the previous equation and solving forYyields Y = V . Plugging this into the original equation showing the various components of GDP results in the following relationship: This is equivalent to S = V , since net exports must equal net capital outow (NCO, also known as net foreign investment}. Now suppose that a country is experiencing balanced trade. 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 Balanced Trade Imp orts V Exports 0 V Net Exports 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 ow 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 C = consumption, I = investment, 6' = government purchases, X = exports, M = imports, and NX = net exports: C+J+G+X Also,n saving 0' -- I +G+ NX he nation that is left after paying for V . Therefore, national CI+GNX C+I+G+X+M+NX Rearranging the previous equation and solving for Y yields Y = v . Plugging this into the original equation showing the various components of GDP results in the following relationship: This is equivalent to S = V , since net exports must equal net capital outow (NCO, also known as net ioreign investment). Now suppose that a country is experiencing balanced trade. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > [greater than), c {less than), or = (equal to). Outcomes of Balanced Trade Imports V Exports 0 V N et Exports 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 C = consumption, I = investment, G = government purchases, X" = exports, M = imports, and NX = net exports: Y Also, national saving is the income of the nation that is left after paying for . Therefore, national saving (S) is defined as: investment and consumption consumption S investment government purchases and consumption Rearranging the previous equation and solving for Y yields Y = = . Plug the various components of GDP results in the following relationship: S This is equivalent to S = , since net exports must equal net capital outflow (NVCO, also known as net foreign investment). Now suppose that a country is experiencing balanced trade. Determine the relationships between the entries in the following table, and enter these relationships using the following symbols: > (greater than), [greater than), <: than or="{equal" to outcomes of balanced trade imp orts v exports n at fvnnrh: in a closed economy saving and investment must be equal but this is not the case an open economy. following problem you will explore howi are connected international ow capital goods before delving into relationship between these various components asked recall some relationships aggregate variables that useful your analysis. make up gdp. national income equals total expenditure on output services. thus where c="consumption," i="investment," government purchases x="exports," m="imports," nx="net" exports: e: h also nation left after paying for .therefore dened as: rearranging previous equation solving y yields . plugging original showing gdp results relationship: equivalentto s="V" since net ne w known as foreign now suppose country experiencing trade. determine entries table enter using symbols: :="[greater" oi imports how g="government" therefore outow ntry ollowing :5 a: ci flow defined> . Plugging this into the original equation showing the various components of GDP results in the following relationship: S This is equivalent to S = , since net exports must equal net capital outflow (NVCO, also known as net foreign investment). Now suppose that a coun G + NCO balanced trade. Determine the relationships between the entries in the following table, and enter these relationships using the fo I + NCO (greater than), (greater than),