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.

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Definitions:

Jokes

Short stories or statements designed to provoke laughter or amusement.

Short-Run Marginal Cost

The increase in cost that results from producing one additional unit of output, specifically in the short term where at least one input is fixed.

Production Function

An equation or graph that shows the maximum output of goods that can be produced from different combinations of inputs.

Factor 2

Represents the second variable or input in a production process that is used to generate output.