QUESTION

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National income accounting and Balance of payments (1) Derive the relation between savings, domestic investment, and net capital outflow using the national income accounting identity. (4pts) (2) Prove that $\mathrm{Y}>\mathrm{C}+\mathrm{I}+\mathrm{G}$ holds If saving is greater than domestic investment (4pts) For the tocibar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

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