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
Correct Answer:
Verified
Correct Answer:
Verified
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