Which of the following is correct? Gross private domestic investment:
a. Includes goods that are produced but not consumed.
b. Is always greater than Personal Consumption Expenditures.
c. Includes stock and bonds.
d. All of the above are correct.
Question 2
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.)The U.S. Federal Reserve intervenes to puchase euros in the foreign exchange market.
a. Debit the U.S. financial account; credit the U.S. financialaccount.
b. Credit the U.S. financial account; debit the U.S. financialaccount.
c. Debit the U.S. financial account; credit the U.S. current account.
d. Credit the U.S. financial account; debit the U.S. current account.
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