In the National Income Accounts, Government Purchases Are Goods and Services

question 82

Multiple Choice

In the national income accounts, government purchases are goods and services purchased by:

• A)the federal government.
• B)the federal and state governments.
• C)state and local governments.
• D)federal, state, and local governments.

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Definitions:

Trade Credit

The extension of credit by a supplier to their customer, allowing the customer to purchase goods or services and pay the supplier at a later date.

Short-Term Financing

A type of funding intended to meet immediate and temporary financial needs of a business.

Corporate Debt Securities

Financial instruments issued by corporations to borrow money from investors.

Security Sold Privately

A financial instrument, such as a stock or bond, that is sold directly to investors rather than through a public market.