Which of the Following Is NOT True About This National

question 77

Multiple Choice

Which of the following is NOT true about this national income equation:

• A)For the current account, CA, to improve, we may have to invest less than otherwise would be the case.
• B)For the current account, CA, to improve, we may have to save less to maintain the same amount of investment that includes foreign saving.
• C)For the current account, CA, to improve, the government may have to run budget surplus.
• D)A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.

---

Definitions:

New Roof

The process or cost associated with replacing an old roof with a new one, either for repair or upgrade purposes.

Compounded Annually

Interest calculated on the initial principal and the interest accumulated over the previous periods once every year.

Present Value

The amount needed to invest today to reach a stated future goal, given a certain rate of return.

Withdrawals

Amounts of money taken out of an account, which can reduce the balance in banking or investment contexts.