TB MC Qu. 03-74 The notation is The notation is Y = GNP national income C = consumption 1 = private investment G = government spending X = exports M = imports T = taxes S = savings There is an intimate relationship between a country's BCA and how the country finances its domestic investment and pays for government expenditures. This relationship is given by BCA = X - ME (S-1) + (TG). Given this, in order for

TB MC Qu. 03-74 The notation is The notation is Y=GNP=nationalincomeC=consumptionI=privateinvestmentG=governmentspendingX=exportsM=importsT=taxesS=savings There is an intimate relationship between a country's BCA and how the country finances its domestic investment and pays for government expenditures. This relationship is given by BCAXM(S1)+(TG). Given this, in order for