-In the Above Table, There Are No Taxes and No

question 70

Multiple Choice

-In the above table, there are no taxes and no imports or exports. The equilibrium level of expenditure for this economy is

• A) any level because investment always equals government expenditures.
• B) no level because consumption expenditure is always less than real GDP.
• C) $3,000.
• D) $5,000.

---

Definitions:

Factoring

Factoring is a financial transaction where a business sells its accounts receivable to a third party (the factor) at a discount, to raise immediate capital.

Accounts Receivable

Money owed to a company by its customers for products or services delivered but not yet paid for.

Without Recourse

A term indicating that the seller of an asset is not responsible for the buyer's losses if the asset fails to perform as expected.

Bad Debt Risk

The probability that loans or receivables will not be collected and will result in a loss for the lender or creditor.