Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the domestic quantity supplied?

Government purchases are part of _______ and include _______

a. national income; federal and state government purchases b. GDP; federal, state, and local government purchases c. GDP; federal government purchases only d. national income; federal government purchases only e. national income; federal, state, and local government purchases

If a corporation borrows capital for a specified period of time at an agreed-upon interest rate, this is a

a. common stock b. preferred stock c. convertible stock d. bond e. double tax