based on this:

• PRIVATE SAVINGS + GOVERNMENT SAVINGS = SAVINGS = INVESTMENT + EXPORTS - IMPORTS
• EXPORTS - IMPORTS = TRADE (DEFICIT OR SURPLUS)
• SAVINGS - INVESTMENTS = EXPORTS - IMPORTS
  • EXPORTS - IMPORTS = GOODS AND SERVICES THAT AFFECT GDP
• S - I = CAPITAL ACCOUNT
  • MEASURES THE INTERNATIONAL TRANSACTION IN ASSETS
• INVESTMENT GREATER THAN SAVINGS
  • BOTH SIDES ARE NEGATIVE

17) If the capital account, on any given year, experiences a deficit, then:

a) the trade balance is positive, and savings minus investment is negative

b) the trade balance is in a deficit, and savings minus investment is positive

c) the trade balance endures a surplus, and savings less investment is positive

d) the trade balance suffers a deficit, and savings less investment is negative