*The two main sources for the supply of capital in the U.S. economy are:
A. private sector investment and government borrowing when spending is higher than tax revenues.
B. domestic savings from individuals and firms and inflows of financial capital from foreign investors.
C. domestic savings from individuals and firms and government borrowing to make up a tax shortfall.
D. domestic private sector borrowing and inflows of financial capital from foreign investors.
Answer:B
*The two main sources for the supply of capital in the U.S. economy are:
A. private sector investment and government borrowing when spending is higher than tax revenues. B. domestic savings from individuals and firms and inflows of financial capital from foreign investors. C. domestic savings from individuals and firms and government borrowing to make up a tax shortfall. D. domestic private sector borrowing and inflows of financial capital from foreign investors.
Explanation: Type: Multiple Choice