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

question 33

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)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:

Social Capital

The networks of relationships among people who live and work in a particular society, enabling that society to function effectively.

Social Media

Digital platforms that enable users to create and share content or participate in social networking.

Informal Group

A naturally occurring group formed by individuals within an organization based on personal relationships, interests, or social activities, not structured by the organization.

Formal Group

A group formed by an organization to perform specific tasks or achieve specific objectives, with clearly defined roles and structures.