Business, 26.02.2020 03:09 jetblackcap

National accounting identities Let C stand for consumption spending, I for investment, G for government purchases, X for exports, IM for imports, DI for disposable income, and NT for net taxes. Consider the following identity and answer the questions that follow. Which of the following best characterizes the above identity?

A. National income must equal domestic product.

B. Domestic product must exceed national income.

C. National income must equal the total amount of leakages from the nation's flow of income and expenditures.

D. National income must equal the total amount of injections into the nation's flow of income and expenditures.

True or False: Disposable income must equal consumption plus saving.

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National accounting identities Let C stand for consumption spending, I for investment, G for governm...

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