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The notation is Y = GNP = national income C = consumption I = private investment G = government spending X = exports M =

The notation is Y = GNP = national income C = consumption I = 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 M (S I) + (T G). Given this, in order for a country to reduce a BCA deficit, which of the following must occur

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