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

question 28

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, 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)both a and b are true
• D)none of the above

---

Definitions:

Friends

Individuals with whom one shares a bond of mutual affection, typically exclusive of sexual or family relations.

Conventional Aesthetics

Traditional principles and standards of beauty accepted by a majority within a culture or society.

Tattoos

Permanent designs or marks made on the skin using pigments inserted through pricks into the skin's top layer.

Middle-class Status

A social and economic classification that includes individuals and families with moderate income levels, often associated with stable employment, education, and the ability to afford comfortable living.