Exam 7: Savings and Investment Process

Personal consumption expenditures (PCE) include:

The personal savings rate is calculated as:

Which of the following expenditures account for the largest part of the Federal budget?

The anticipation of future events has a little to no effect on savings.

Gross private domestic investment measures a nation's output of goods and services for a specified period of time.

The federal government relies primarily on income taxes and social insurance taxes for its revenues.

If impeachment goes to trial, that trial is held in the House of Representatives.

The interest paid on municipal bonds is exempt from federal income taxes.

The largest proportion of government revenue comes from corporate income taxes.

Capital market securities are debt securities with maturities less than one year and corporate stocks.

Capital market securities include debt securities but not corporate stocks.

Net exports are the exports of goods minus total imports.

The most important savings surplus unit in the economy is:

Local governments depend heavily on property taxes for their revenues, while state governments depend largely on sales taxes and special taxes, such as those on tobacco products.

Which of the following statements is false?

Capital market securities include all of the following except:

The primary factors that influence the total amount of savings in an economy in any given period include the trade surplus or deficit and exchange rates.

GDP = PCE + GE + GPDI - NE.

Savings surplus occurs when an economic unit has current income that exceeds its direct investment in real assets.

Government expenditures include only expenditures for goods and services by the federal government.