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.

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Definitions:

Break Line

A line used in drawings to indicate where the material is removed or where the drawing is sectioned to reveal internal features.

Descriptive Drawing

An illustrative representation providing detailed information about the features and dimensions of objects.

Secondary View

An additional viewpoint or projection on technical drawings, providing further detail or a view from another angle for clarity.

Extended View

A type of view in drawing that is used to show internal features of an object that are not visible in a standard view, by 'extending' or cutting open the object.