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

question 51

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 ≡ X - M ≡ (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:

Power Resource Theory

A theory in political and social science that analyzes the power of different societal groups based on their access to resources.

Distribution

The process of making a product or service available for the consumer or business user that needs it, including transportation, warehousing, and enabling sales.

Power Changes

Shifts or alterations in the distribution or exercise of authority, control, or influence within a given context.

Instrumental Marxists

Marxist theorists who emphasize the role of economic structures and elites in determining state policies and societal norms.