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.

---

Definitions:

Cellulose

A complex carbohydrate that constitutes the primary structural component of plant cell walls and is indigestible to humans.

Plant Cuticles

A protective, waxy coating on the surface of stems and leaves that prevents water loss.

Water Loss

The process by which water leaves a body or system, typically through evaporation, excretion, or perspiration.

Waxes

A diverse group of organic compounds that are lipophilic, malleable solids near ambient temperatures, found in plants and animals.