(Consider This) Which of the Following Is an Example of Economic

question 135

Multiple Choice

(Consider This) Which of the following is an example of economic investment?

• A) Volvo buys an old factory building from General Motors.
• B) Nike buys a new machine that increases shoe production.
• C) Bill Gates buys shares of stock in IBM.
• D) Warren Buffet buys U.S. savings bonds.

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Definitions:

Government Borrowing

The process by which a government obtains funds from the private sector or other countries, typically through issuing securities.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency globally.

Federal Deficit

The amount by which a government's expenditures exceed its tax revenues over a specified fiscal period, leading to borrowing or the creation of new funds.