In late 2008, the average risk premium rose because
A) investors feared a revival of inflation.
B) large tax increases in the United States reduced corporate profits and led to fears of increased defaults.
C) of the financial crisis.
D) of fraud in the market for municipal bonds.
C
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Which of the following statements is true?
A) Government purchases is the largest component of GDP. B) Net exports are equal to exports plus imports. C) U.S. imports refer to the physical quantity of foreign-produced goods that are purchased by residents of the United States. D) Government purchases includes the spending on goods and services by all levels of government (federal, state, and local). E) c and d