Which of the Following Is NOT True About the National $S+(T-G)=I+C \mathrm{~A} ?$

question 43

Multiple Choice

Which of the following is NOT true about the national income identity given by the equation: $S+(T-G) =I+C \mathrm{~A} ?$

• A)If CA is positive,national saving finances the purchase of our goods by foreign users.
• B)If CA is negative,our investment exceeds our national savings.
• C)A negative CA may imply that foreigners have confidence in the U.S.economy.
• D)If CA is negative and large,a country risks foreigners owning a large piece of its assets.
• E)None of the above.

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Definitions:

Minimum Point

The minimum point refers to the lowest value of a function, often found in mathematical optimization and related fields.

Marginal Cost

The rise in overall expenses associated with the manufacturing of an extra unit of a good or service.

Average Cost

The total cost of production divided by the number of units produced, a measure of the cost per unit.

Cost Function

A mathematical model or formula used to express the total cost of production as a function of varying levels of output.