In an open economy, domestic investment equals domestic saving plus net capital inflows.

Here's the step-by-step explanation:

1. Domestic saving: This is the part of the domestic income that is not consumed or spent by the households or the government. It is available for investment.

2. Net capital inflows: This is the difference between the capital that flows into a country (from foreign investors investing in domestic assets) and the capital that flows out of the country (from domestic investors investing in foreign assets).

3. In an open economy, domestic investment is not only financed by domestic saving but also by the capital coming in from abroad.

So, the domestic investment in an open economy is the sum of domestic saving and net capital inflows.

Question

In an open economy, domestic investment equals domestic saving plus net capital inflows.

Here's the step-by-step explanation:

1. Domestic saving: This is the part of the domestic income that is not consumed or spent by the households or the government. It is available for investment.

2. Net capital inflows: This is the difference between the capital that flows into a country (from foreign investors investing in domestic assets) and the capital that flows out of the country (from domestic investors investing in foreign assets).

3. In an open economy, domestic investment is not only financed by domestic saving but also by the capital coming in from abroad.

So, the domestic investment in an open economy is the sum of domestic saving and net capital inflows.

Knowee AI · Accepted Answer

In an open economy, domestic investment equals domestic saving plus net capital inflows.

Here's the step-by-step explanation:

1. Domestic saving: This is the part of the domestic income that is not consumed or spent by the households or the government. It is available for investment.

2. Net capital inflows: This is the difference between the capital that flows into a country (from foreign investors investing in domestic assets) and the capital that flows out of the country (from domestic investors investing in foreign assets).

3. In an open economy, domestic investment is not only financed by domestic saving but also by the capital coming in from abroad.

So, the domestic investment in an open economy is the sum of domestic saving and net capital inflows.

In an open economy, domestic investment equals:Group of answer choicesdomestic saving plus net capital inflowsnet capital inflowsdomestic savingnet capital outflows

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