1 Another important identity NX=Y-(C+I+G) implies NX=(Y-C-G)-I 三 S trade balance net capital outflows -spending need not equal output -saving need not equal investment Return CHAPTER8 The Open Economy slide 9CHAPTER 8 The Open Economy slide 9 Another important identity NX = Y – (C + I + G ) implies NX = (Y – C – G ) – I = S – I trade balance = net capital outflows ▪spending need not equal output ▪saving need not equal investment 1 Return