Question

Which of the following is not true about the national income identity given by the equation: S +(T - G) = 1 + CA?

A. If CA is​ positive, national saving finances the purchase of our goods by foreign users.
B. If CA is​ negative, our investment is less than our national savings.
C. If CA is negative and​ large, a country risks foreigners owning a large piece of its assets.
D. A negative CA may imply that foreigners have confidence in the U.S. economy.

Answer 1

None of the options are False.

Step-by-step explanation:

CA means Current Account Balance

T means Taxes

G means Government Spending

S equals National Savings and

I equals Investment

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