Government Purchases Include All of the Following EXCEPT

question 8

Multiple Choice

Government purchases include all of the following EXCEPT:

• A) social security benefits paid by the federal government.
• B) the construction of a new court house built by a county government.
• C) the salary paid to an elementary school teacher employed by a local public school district.
• D) the purchase of new military hardware by the U.S. Army.

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Definitions:

Net Exports

The net amount obtained by subtracting a nation's total imports from its total exports.

Imports

Goods or services brought into one country from another for the purpose of being sold or used, contributing to the domestic supply of products.

Trade Deficit

Occurs when a country's imports of goods and services exceed its exports, leading to a negative balance of trade.

Net Capital Outflow

Disparity in investment activities, with locals buying assets internationally, in contrast to foreigners buying domestically.