From the national income identity, we can derive the following relationship for the trade balance (net exports):

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BlackTom AI · Accepted Answer

From the national income identity Y = C + I + G + NX, subtracting consumption and government spending gives Y − C − G = I + NX. 1) Relevant concepts: - Y is national output (GDP); C is consumption; I is investment; G is government spending; NX is net exports (exports − imports). - National saving (S) is defined as income not consumed or spent by the government: S ≡ Y − C − G. This S is the sum of private and public saving. 2) Step-by-step reasoning: Start with the national income identity: Y = C + I + G + NX. Subtract C and G from both sides: Y − C − G = I + NX. By the definition of national saving, replace the left-hand side with S: S = I + NX. Solve for NX by isolating it on one side: NX = S − I. 3) Intermediate steps shown explicitly: Y = C + I + G + NX → Y − C − G = I + NX Define S = Y − C − G → S = I + NX → NX = S − I Numeric illustration: if Y = 1000, C = 600, G = 200 then S = 1000 − 600 − 200 = 200. If investment I = 150, then NX = S − I = 200 − 150 = 50 (a trade surplus of 50). 4) Why this is correct: The algebra follows directly from the national income identity and the standard definition of national saving. NX measures the excess of national saving over domestic investment; if S > I, the country lends abroad (NX > 0); if S < I, the country borrows from abroad (NX < 0). 5) Why other possible forms would be incorrect: - NX = S + I would imply trade balance grows with both saving and investment in the same direction; it contradicts the identity S = I + NX. - NX = I − S is just the negative of the correct relation and would reverse the economic interpretation (it would imply a surplus when S < I). - Writing NX = Y − C − G − I is an algebraic rearrangement of the identity but is not expressed in terms of saving; the standard and informative form is NX = S − I. Conclusion: The correct relation is NX = S − I, which matches the provided answer.

From the national income identity, we can derive the following relationship for the trade balance (net exports):单项选择题

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