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:

Rational Decision

A decision-making process that is based on making choices that result in the optimal level of benefit or utility for the individual.

Economic Payoff

The return or financial gain from an investment or decision in the context of economics.

Sunk Costs

Costs that have already been incurred and cannot be recovered or refunded.

Marginal Analysis

Marginal analysis evaluates the impact of a slight change in production or consumption, used to make decisions about allocating resources most efficiently.