Question

for open economies:
○ s = i + ca
○ s > i + ca
○ s = i - ca
○ s < i + ca
○ s = i

Explanation:

In an open economy, the national saving - investment identity is derived from the balance of payments and national income accounting. The formula for the relationship between saving (\(S\)), investment (\(I\)), and the current account (\(CA\)) is \(S = I+CA\). This is because national saving can be used for domestic investment and to finance a current account surplus (or the current account is related to the difference between saving and investment in an open economy context).

Answer:

\(S = I + CA\) (the option with the expression \(S = I+CA\))