If Foreign Investment Were Not Available to Finance the U

question 41

Multiple Choice

If foreign investment were not available to finance the U.S.national debt then

• A) interest rates on loans would increase.
• B) there would be no impact on the U.S. economy.
• C) the debt would not be as large.
• D) policy makers would not be as worried about over spending

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Definitions:

Marginal Revenue

This is the increase in revenue that results from the sale of an additional unit of a product.

Marginal Cost

The change in total production cost that arises when the quantity produced is incremented by one unit.

Demand Curve

A diagram demonstrating how the price of an item correlates with the volume that consumers are ready to acquire at assorted prices.

Marginal Revenue Curve

A visual depiction illustrating the changes in marginal revenue as the level of produced output fluctuates.