Which is greater, gross domestic product or national income? By how much?
a. Gross domestic product < National income; indirect business taxes, depreciation, and income earned by foreigners in the United States
b. Gross domestic product < National income; net exports and indirect business taxes
c. Gross domestic product > National income; net exports and indirect business taxes
d. Gross domestic product > National income; indirect business taxes, depreciation, and income earned by foreigners in the United States
Question 2
When the U.S. government removes investment tax credits:
a. consumption spending falls.
b. the return on investment increases.
c. capacity utilization in the economy expands.
d. the cost of capital increases.
e. technological innovation advances more rapidly.
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