An Inward Shift in the U

question 81

Multiple Choice

An inward shift in the U.S.economy's production possibility frontier could represent:

• A)U.S.workers moving to Canada.
• B)workers moving from New Jersey to Massachusetts.
• C)U.S.economic growth.
• D)a movement from labor-intensive to capital-intensive industries in some states.

---

Definitions:

Interest Rates

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

U.S. Trade Deficits

occur when the total value of goods and services the United States imports exceeds the value of what it exports.

Government Bonds

Securities issued by a government to raise funds from the public to finance its expenditure.

Government Spending Crowding Out

A situation where increased government spending leads to a reduction in private sector spending, either because of higher interest rates or because funds available for private investments are used for government projects.