There Is an Intimate Relationship Between a Country's BCA and How

question 42

Multiple Choice

There is an intimate relationship between a country's BCA and how the country finances its domestic investment and pays for government expenditures.This relationship is given by BCA $\equiv$ X - M $\equiv$ (S - I) + (T - G) .Given this,in order for a country to reduce a BCA deficit,which of the following must occur?

• A)For a given level of S and I, the government budget deficit (T - G) must be reduced.
• B)For a given level of I and (T - G), S must be increased.
• C)For a given level of S and (T - G), I must fall.
• D)All of the above would work to reduce a BCA deficit.

Learn how price changes affect consumer utility and how to calculate compensating and equivalent variations.

Grasp the understanding of demand functions and how price influences demand.

Comprehend how consumer's surplus changes with price changes.

Understand the concept of reservation price and income effects on consumer choice.

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Definitions:

GEO

is an abbreviation for Geostationary Earth Orbit, a circular orbit around the Earth having a period of 24 hours, often used for satellite communications and weather monitoring.

LEO

Low Earth Orbit, referring to the orbit of a satellite at an altitude between 160 to 2,000 kilometers above Earth's surface.

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit and below geostationary orbit, typically used for satellites, including those for navigation systems like GPS.

Microwave

An electromagnetic wave with a wavelength in the range of 1 millimeter to 1 meter; also refers to a kitchen appliance using microwaves to heat or cook food.