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

question 36

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. 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 an/or part of domestic investment are being finance with foreign-controlled capital.
• D)All of the above are true.

---

Definitions:

Paperwork

The written or printed documents and records that are necessary for formal or administrative purposes.

Communication Circle

A method or model of communication involving a sender, message, receiver, and feedback that ensures information is effectively relayed and understood among participants.

Feedback

The return of information about the result of a process or activity, an important component for systems regulation and learning.

Message

A piece of information or communication sent from one person to another.