The financing of investment spending is often made possible by
a. consumer spending.
b. money supply creation.
c. borrowing.
d. tax reductions.
c
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What are the four subcategories of investment expenditures?
What will be an ideal response?
When moving along the production possibilities frontier, opportunity cost is measured as the
A) increase in the quantity produced of one good divided by the decrease in the quantity produced of another good. B) decrease in the quantity produced of one good divided by the increase in the quantity produced of another good. C) quantity produced of one good divided by the quantity produced of another good. D) quantity produced of one good multiplied by the quantity produced of another good.
Foreign direct investment is defined as
A) the acquisition of more than 10 percent of the shares of ownership in a company in another nation. B) funds allocated into a foreign stock market that represent an ownership share of firms less than 5 percent. C) purchasing both capital equipment and government bonds abroad. D) purchasing government bonds.
A trade deficit for the United States is generally financed by:
A. Lending to the Federal government B. Borrowing from the Federal government C. Buying securities or assets from other nations D. Selling securities or assets to other nations