A particular economy has consumption of $400M, a government deficit of $100M, taxes of $250M, and income of $800M. Which of the following statements must be true?
A. If investment is zero, there is no foreign trade imbalance.
B. If the trade surplus is $50M, investment will be equal to $100M.
C. If the capital account surplus is $50M, investment will be equal to $100M.
D. If the trade surplus is $100M, there will be investment.
E None of the above statements is necessarily true.
