nxnx|In a closed economy, saving and investment must be ,lisa18

Question: 6. Aggregate expenditure and income Suppose the following table shows consumption (CC), investment (II), government purchases (GG), and net exports (NXNX) in a hypothetical economy for various levelnxnxs of real GDP. Assume that the price level remains unchanged at all levels of real GDP.

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.

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