The large budget deficits of 2003 and 2006 meant that the federal government was borrowing upwards of $1.7 trillion over the four-year period. If that borrowing limits the ability of the private sector to get financial capital for its purposes, economists would call this
A. forcing aside.
B. forcing in.
C. crowding in.
D. crowding out.
Answer: D
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The ________ balance includes purchases and sales of financial assets to and from citizens and companies of other countries.
A. capital account B. investment account C. current account D. none of these
Markovich Corporation is considering building a new plant. It will cost $1 million today to build it and it will generate revenues of $1.121 million three years from today. Of the interest rates below, which is the highest interest rate at which Markovich still would be willing to build the plant?
a. 3 percent b. 3.5 percent c. 4 percent d. 4.5 percent
Net exports is a positive number when:
A. a nation's exports of goods and services exceed its imports. B. depreciation is greater than gross private domestic investment. C. gross private domestic investment is greater than depreciation. D. a nation's imports of goods and services exceed its exports.
In 2011, U.S. GDP was
A) $15 trillion using the expenditure approach. B) $15 trillion using the income approach. C) $15 trillion using the expenditure approach and $14 trillion using the income approach. D) $16 trillion using the income approach and $14 trillion using the expenditure approach. E) both A and B are correct.