"Net Foreign Factor Income" in the National Income Accounts Refers

question 25

Multiple Choice

"Net foreign factor income" in the national income accounts refers to the difference between:

• A) The income Americans gain from supplying resources abroad and the income that foreigners earn by supplying resources in the U.S.
• B) The value of products sold by Americans to other nations and the value of products bought by Americans from other nations
• C) The value of investments that Americans made abroad and the value of investments made by foreigners in the U.S.
• D) The income earned by Americans in the U.S. minus the income earned by foreigners in the U.S.

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Definitions:

Lottery

A form of gambling involving the drawing of numbers for a prize.

Winnings

Refers to the money or prizes earned from gambling, contests, or competitions.

Corporate Bond

A debt security issued by a corporation to raise funding. It obligates the issuer to pay interest and repay the principal at a later date.

Bondholder

An individual or entity that owns bonds issued by corporations, governments, or other institutions, which means they have lent money to the issuer in exchange for interest payments and the return of principal at maturity.