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In an open economy, the national income (Y) of the economy is : (C, I, G, X, M stand for Consumption, Investment, Govt. Expenditure, total exports and total imports respectively.)

In an open economy, the national income (Y) of the economy is : (C, I, G, X, M stand for Consumption, Investment, Govt. Expenditure, total exports and total imports respectively.)

(a)

Y = C + I + G + X

(b)

Y = C + I + G – X + M

(c)

Y = C + I + G + (X – M)

(d)

Y = C + I – G + X – M

Answer:

(c)

Explanation