Use the following consumption schedule to answer the next question. Disposable income equals consumption at

The United States is called a debtor nation because

A) it has a large current account deficit and is simultaneously funded by foreign investment. B) it has a large balance of payments deficit that is used to fund the current account deficit. C) U.S. capital outflows are much greater than U.S. capital inflows. D) it has a large financial account deficit that is used to fund the current account deficit.

If the government purchases multiplier equals 2, and real GDP is $14 trillion with potential real GDP $14.5 trillion, then government purchases would need to increase by ________ to restore the economy to potential real GDP

A) $7.25 trillion B) $1 trillion C) $500 billion D) $250 billion