Real investment spending is ____ real personal consumption.
a. equal to
b. greater than
c. stable compared to
d. highly volatile compared to
QUESTION 2Most of the U.S. national debt is owed to ____. Thus a rising national debt implies that there will be a future redistribution of income and wealth in favor of ____.
a. foreigners; foreigners
b. other U.S. citizens; bondholders
c. foreigners; those needing government services
d. other U.S. citizens; those needing government services
QUESTION 3Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:
a. capital inflow. b. capital outflow.
c. current account outflow. d. unilateral transfer.
QUESTION 4The investment demand curve shows the amount businesses spend for investment goods at different possible:
a. price levels.
b. levels of GDP.
c. rates of interest.
d. levels of taxation.
QUESTION 5External debt is that portion of the national debt:
a. held by private investors.
b. held by the Federal Reserve.
c. that the United States does not intend to repay.
d. held by foreigners.
QUESTION 6The purchase of U.S. assets by foreigners is a:
a. capital inflow. b. capital outflow.
c. current account deficit. d. unilateral transfer.