U.S. Investment Is Financed from

question 159

Multiple Choice

U.S. investment is financed from

• A) private saving and borrowing from the rest of the world only.
• B) private saving, government budget surpluses, and borrowing from the rest of the world.
• C) private borrowing, government budget deficits, and lending to the rest of the world.
• D) private saving, government budget deficits, and borrowing from the rest of the world.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination by supply and demand.

Coconuts

Tropical fruits with a hard outer shell and milky interior, known for their versatility in food products and industrial uses.

Fish

Aquatic animals that are typically cold-blooded, covered with scales, and equipped with fins, used as a significant food source for humans.

Comparative Advantage

An economic principle that refers to the ability of an entity to produce goods or services at a lower opportunity cost than others, leading to more efficient trade.