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

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 $\equiv$ X - M $\equiv$ (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

Correct Answer:

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