QUESTION 3 There is an intimate relationship between a country's BCA and how the country finances its domestic investment and pays for is(are) false? government expenditures. This relationship is given by BCA = X - M= (S - 1) + (T - G). Given this, which of the following statements I. If (S - 1) > 0, it implies that a country's domestic savings is sufficient to finance domestic investment. II. If BCA > 0, it implies that a country has a trade deficit. Ill. In order to reduce the BCA, for a given level of S and I, the government budget deficit (T - G) must be reduced. O I only O lI only O Ill only O I and Ill only O None of the above answers QUESTION 4 If the difference between tax revenue and government expenditures is negative, it implies that tax revenue is insufficient to