I've been reading my textbook, watching Khan Academy, and Googling to no avail. Can someone please help me with the following questions?

1 - Which of the following is NOT true about the national income identity given by the equation: S+(T-G)=I+CA?

A) If CA is negative and large, a country risks foreigners owning a large piece of its assets.
B) If CA is positive, national saving finances the purchase of our goods by foreign users
C) If CA is negative, our investment exceeds our national savings
D) A negative CA may imply that foreigners have confidence in the U.S. economy
E) None of the above

2 - Which of the following is NOT true about this national income equation: S+(T-G)=I+CA

A) For the current account, CA, to improve, the government may have to run budget surplus
B) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country
C) For the current account, CA, to improve, we may have to save more to maintain the same amount of investment that includes foreign saving
D) For the current account, CA, to improve, we may have to invest less than otherwise would be the case
E) None of the above

Sure! I can help you with these questions.

To answer these questions, we need to understand the national income identity given by the equation: S + (T - G) = I + CA. Let's break it down:

S = National Saving
T = Taxes
G = Government Spending
I = Investment
CA = Current Account Balance

Now let's go through each question and determine which statement is NOT true:

1) Which of the following is NOT true about the national income identity given by the equation: S + (T - G) = I + CA?

A) If CA is negative and large, a country risks foreigners owning a large piece of its assets.
This statement is true. If the current account balance (CA) is negative and large, it means that a country is importing more than it is exporting. This can lead to foreigners owning a large piece of its assets.

B) If CA is positive, national saving finances the purchase of our goods by foreign users.
This statement is true. If the current account balance (CA) is positive, it means that a country is exporting more than it is importing. This allows foreign users to purchase our goods, which is funded by national saving.

C) If CA is negative, our investment exceeds our national savings.
This statement is true. If the current account balance (CA) is negative, it means that a country is importing more than it is exporting. This implies that our investment (I) exceeds our national savings (S).

D) A negative CA may imply that foreigners have confidence in the U.S. economy.
This statement is true. A negative current account balance (CA) could indicate that foreigners are investing in the U.S. economy, which implies confidence.

E) None of the above.
Since all the statements are true, the correct answer is not E.

Therefore, the answer to question 1 is: None of the above.

2) Which of the following is NOT true about this national income equation: S + (T - G) = I + CA?

A) For the current account, CA, to improve, the government may have to run a budget surplus.
This statement is true. If the current account balance (CA) needs to improve (e.g., to increase exports or reduce imports), the government may need to run a budget surplus.

B) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.
This statement is NOT true. If a reduction in the trade deficit occurs with one country, it does not necessarily mean that it will result in an increase in the trade deficit with another country. It depends on various economic factors and international trade dynamics.

C) For the current account, CA, to improve, we may have to save more to maintain the same amount of investment that includes foreign saving.
This statement is true. To improve the current account balance (CA), a country may need to increase national saving to maintain the same level of investment, which may include foreign saving.

D) For the current account, CA, to improve, we may have to invest less than otherwise would be the case.
This statement is true. To improve the current account balance (CA), a country may need to lower investment levels to reduce the trade deficit.

E) None of the above.
Since statement B is not true, the answer to question 2 is: B) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country.

I hope this explanation helps you understand the answers to the questions. If you have any further questions, feel free to ask!

1 - The correct answer is E) None of the above.

Explanation:
- Option A) If CA is negative and large, a country risks foreigners owning a large piece of its assets. This is true because a negative CA implies that a country is borrowing from foreigners to finance its domestic investment, which can result in foreigners owning a larger share of the country's assets.
- Option B) If CA is positive, national saving finances the purchase of our goods by foreign users. This statement is true because a positive CA means that a country's exports exceed its imports, resulting in foreign users purchasing goods produced within the country.
- Option C) If CA is negative, our investment exceeds our national savings. This is also true because a negative CA means that a country is borrowing from abroad to finance its investment, indicating that investment exceeds national savings.
- Option D) A negative CA may imply that foreigners have confidence in the U.S. economy. This statement is true because a negative CA suggests that foreigners are willing to invest in the U.S. economy, indicating confidence in its potential returns.

Therefore, option E) None of the above is NOT true, as all the given statements are correct.

2 - The correct answer is D) For the current account, CA, to improve, we may have to invest less than otherwise would be the case.

Explanation:
- Option A) For the current account, CA, to improve, the government may have to run a budget surplus. This statement is true because a budget surplus reduces government borrowing and indirectly improves the current account balance.
- Option B) A reduction in the trade deficit with one country will simply show up as an increase in a trade deficit with another country. This statement is also true because a reduction in a trade deficit with one country does not necessarily mean an overall improvement in the current account, as it may result in an increase in the deficit with other countries.
- Option C) For the current account, CA, to improve, we may have to save more to maintain the same amount of investment that includes foreign saving. This is true because a higher saving rate helps increase national savings, which can be used to finance domestic investment and reduce reliance on foreign saving.
- Option D) For the current account, CA, to improve, we may have to invest less than otherwise would be the case. This statement is NOT true because a decrease in investment would potentially reduce economic growth and have an adverse impact on the current account balance.

Therefore, option D) is the correct answer as it is NOT true.