A major capital purchase is any purchase that you can’t afford to pay for in full with monthly cash flow.

Country A specializes in the production of automobiles and 45% of its population works in the automobile manufacturing industry. A sharp increase in world prices for automobiles led to a boom in the automobile manufacturing industry in Country A

However, the automobile manufacturers overestimated the demand for automobiles. This led to overproduction which resulted in a large stock of unsold cars. Which of the following is likely to happen in the near future? A) Investment in Country A will increase. B) The supply of credit in Country A will increase. C) Household consumption in Country A will increase. D) The unemployment rate in Country A will increase.

In 2003, government spending as a percentage of GDP was approximately

a. 75 percent b. 50 percent c. 33 percent d. 20 percent e. 10 percent