Refer to Table 11.1. What is the value of personal consumption expenditures?

In the simple circular flow model

A) businesses buy labor services from households, but supply other factors of production themselves. B) households spend their entire income on consumer products. C) profits are a type of income that is not received by households. D) households spend the income they receive from labor services but save the income they receive from selling the other factors of production.

A central cause of the rising debt-GDP ratio in the United States during the 1980s and 1990s was

A) the tax cuts of the early 1980s. B) continuous increases in the military portion of the federal budget. C) overly-generous indexation of Social Security benefits. D) deficit-reduction targets.