Which of the Following Is NOT True About the National

question 80

Multiple Choice

Which of the following is NOT true about the national income identity given by the equation: S + (T -G) = I + CA?

• A)If CA is positive, national saving finances the purchase of our goods by foreign users.
• B)If CA is negative, our investment is less than 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.

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Definitions:

Discount Period

The time frame in which a payment can be made at a reduced rate, usually before a specified due date.

Invoice

A document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

Discount

The reduction from the full amount or value of something, often used as an incentive in sales.

Merchandise Inventory

Merchandise inventory is the total cost of all goods held by a company for the purpose of resale during a given period.