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:

Complex Fraction

A complex fraction is a fraction in which the numerator, the denominator, or both contain fractions themselves.

Simplify

The process of altering an expression to make it easier to work with, often by combining like terms or using mathematical properties.

Division

A mathematical operation represented by the symbol ÷ or /, involving the process of dividing one number by another.