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

question 50

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

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Definitions:

Scattergram

A graphical representation using dots to show the relationship or distribution of two variables, often used in statistics and data analysis.

Absolute Data

Quantitative information that is completely independent of other numbers, providing specific facts rather than relative or comparative metrics.

Relative Data

Information that is pertinent or relevant in comparison to another set of data, often used to analyze relationships or trends.

Earning Gap

The disparity in income between different demographics, such as between genders or races, often pointing to issues of inequality or discrimination in the workforce.