In an open economy, the National Income identity (Y = C + I + G + NX) implies that Net Exports (NX) equal:

APrivate Saving plus Public Saving

BGovernment Deficit minus Consumption

CNational Saving minus Investment (S - I)

DImports minus Foreign Aid

Explanation

From Y = C + I + G + NX, rearranging gives (Y – C – G) – I = NX, which simplifies to Net Exports = Saving – Investment (S – I).

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