How would each of the following transactiosn affect the DGP of the United States
ID: 1255026 • Letter: H
Question
How would each of the following transactiosn affect the DGP of the United States?a. The U.S government pays $1 billion in salaries for government workers.
b. The U.S. government pays $1 billion to Social Security recipients.
c. The U.S. government pays a U.S. firm $1 billion for newly produced airplane parts.
d. The U.S. government pays $1 billion in interest to holders of U.S. government bonds.
e. The U.S. government pays $1 billion to Saudi Arabia for crude oil to add to U.S. government-owned oil reserves.
Explanation / Answer
A. Increase; income B. no affect C. increase D. no affect E. decrease
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