1 Multiple Choice WITH Explanation. [2E]I points] Choose the one alternative that best completes the statement or answers the quution and EK- PLAIN your reasoning. Do not forget to include equations, graphs, or any other material you believe is needed to understand your choice. a (5 points) Use equations to support your answer to this question. Do not forget to explain your reasoning. No credit without an explanation. To answer this question you only need the information provided here for Philippines. Let TB / GDP and CA)\" GDP be the trade balance and the current account as a fraction of GDP of Philippines. Suppose that in 2018, TB/GDP = 2.0 and CAI/GDP = 0.3 and assume that in that year the net unilateral transfers and the net income Erom abroad of Philippines are different from zero. Which of the following options is the most plausible explanation to the fact that for that year the CAIGDP > T B {GDP in Philippines? (a) The trade balance decit was smaller than the current account surplus because of interest payments that the country made on its external debt, which caused the income balance to be negative. (b) the current-account decit was higher than the trade balance because of remittances re- ceived from Filipinos working outside of Philippines. (c) The trade balance decit reects mainly Philippines' effort to pay income on its large external obligations. ((1) Because the net unilateral transfers and the net income from abroad of Philippinu are both negative