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

question 56

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,which of the following is a true statement?

• A)If (S - I) < 0, it implies that a country's domestic savings is insufficient to finance domestic investment.
• B)If (T - G) < 0, it implies that a country's tax revenue is insufficient to finance government spending.
• C)When BCA is negative, it implies that government budget deficits and/or part of domestic investment are being finance with foreign-controlled capital.
• D)All of the above are true

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Definitions:

Impoverished Manager

A leadership style characterized by minimal effort in both managing relationships and work obligations, often resulting in poor team performance.

Transformational Leader

A leader who inspires change and motivates followers to exceed their own interests for the good of the group or organization.

Paternalistic Father-knows-best

A leadership or management style where decision-making is guided by a belief in the leaders' superior knowledge and experience, similar to a father's role in a family.

Opportunistic

Refers to an approach or action taken with the aim of exploiting situations to one's advantage, often with little regard for principles or consequences.