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-1) +(T - G). Given this, in order for a country to reduce a BCA deficit, which of the following must occur? I. For a given level of S and I, the government tax, T, must be reduced. II. For a given level of I and (T-G), S must be increased. III. For a given level of Sand (T - G), I must fall. a) I only d) I & II only b) II only e) None of the above answers c) III only 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-1) +(T - G). Given this, in order for a country to reduce a BCA deficit, which of the following must occur? I. For a given level of S and I, the government tax, T, must be reduced. II. For a given level of I and (T-G), S must be increased. III. For a given level of Sand (T - G), I must fall. a) I only d) I & II only b) II only e) None of the above answers c) III only