The following represents the national savings and investment identity - Supply of financial capital = Demand for financial capital - expressed in algebraic terms:
The saving identity or the saving-investment identity is a notion in national income accounting meaning that the total saved in an economy will be the total invested in new physical machinery, new inventories, and the like.
A country's current national savings and investment identity is expressed in algebraic terms as X - M = S + (T - G) - I. In this instance: private and public domestic savings are higher than domestic investment.
Therefore, the correct answer is as given above
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The complete question goes thus:
Which of the following represents the national savings and investment identity - Supply of financial capital = Demand for financial capital - expressed in algebraic terms?
A. (M - X) = I - S - (T - G)
B. S + (M - X) = I + (G - T)
C. X - M = S + (G - T) - I
D. I - S - (T - G) = (M - X)
B. S + (M - X) = I + (G - T)
