Which of the following is NOT true about the national income identity given by the equation: S + (T -G) = I + 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) A negative CA may imply that foreigners have confidence in the U.S. economy.
D) If CA is negative and large, a country risks foreigners owning a large piece of its assets.
Correct Answer:
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