A country's current national savings and investment identity is expressed in algebraic terms as X-M = S + (G-T) - 1. In this instance:
A. there is an inflow of capital investment from the rest of the world economy.
B. there is no connection from domestic savings and investment to the trade balance.
C. the trade balance is determined by performance of certain sectors of the economy.
D. private and public domestic savings are higher than domestic investment.

The present national reinvestment identity of a nation is expressed as [tex]X-M = S + (G-T) - 1.[/tex] In mathematical terms Inside this example, all remainder of the said world economy would be inflowing capital expenditures.

Capital investment from all around the world is coming in.

CurrentAccount and Investment Saving

[tex]C=consumption\\\\ I= investment\\\\ G=government\ spending\\\\ (X-M) = foreign \ net \ demand[/tex]

So, the [tex]CA = GNP (C+I+G)[/tex]

PiaDeveau PiaDeveau · Answer 2 · 2021-11-24T13:47:22+01:00

Domestic savings are greater than the corresponding investment, both private and public.

The rate of pay rises when capital investment exceeds anticipated saving in a given year. With a larger salary, more money can be saved, and so therefore planned saving equals intended investments. And from the other hand, when projected saving exceeds planned investments over a time, income levels decline.

So, Option "D" is the correct answer to the following question.

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