During a Rapidly Developing National Security Crisis, Which of the Following

question 7

Multiple Choice

During a rapidly developing national security crisis, which of the following people would the U.S. president most likely turn to for advice?

• A) the secretary of state, since the Department of State carries out diplomatic affairs
• B) the Senate Committee on Foreign Relations, and possibly the secretary of defense
• C) the Senate Committee on Homeland Security and Governmental Affairs
• D) the secretary of defense, since the Department of Defense would need to be involved if military action became necessary, and possibly the national security advisor
• E) the secretary of defense, national security advisor, and possibly the secretary of state

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Definitions:

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners, which reflects the flow of capital out of a country.

Net Exports

The value of a country's total exports minus the value of its total imports, representing a component of the GDP calculation.

Saving

The portion of income not spent on current consumption or taxes, typically stored for future use or investment.

Real Exchange Rate

The rate at which a person can exchange the currency of one country for the currency of another, adjusted for inflation.