Identify the incorrect statement about the U.S. federal deficit.
a. The U.S. is now the world's leading creditor
b. The U.S. borrows huge sums from abroad.
c. Some critics blame U.S. fiscal policy as reflected in the large federal deficits for the switch of the U.S. from creditor to debtor nation.
d. Japan and China are big buyers of U.S. Treasury securities.
e. The federal budget, on an average, had a deficit of 3.0 percent relative to GDP.
a
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In a closed economy, equilibrium real Gross Domestic Product (GDP) occurs where
A) the C + I + G line crosses the 45-degree line. B) saving exceeds planned investment. C) planned expenditures exceed national income. D) all of these.
In a game, a Nash equilibrium is reached only if the players:
A) understand the game and the payoffs associated with each strategy. B) follow a mixed strategy. C) use backward induction method to develop their strategies. D) have no best response for the choices made by other players.