Net national savings (S=y-c-g) is realted to the balance on the CA in the following way (the current account identity):
a) national savngs (S)= the balance on the current account (CA) + gross domest product (gdp)- gross national expenditure (GNE)
b) national savings (S)= domestic investment (I)+ the balance on the current account (CA)
c) National savings (S)= domestic investment (I)- the balance on the current account (CA)
d) net national savings (s)+ the balance on the current account (CA)+ domestic investment (I)= gross domestic product
Ans: b) national savings (S)= domestic investment (I)+ the balance on the current account (CA)
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