Which of the following is an example of an injection into the circular flow of income and expenditure?
a. Consumption
b. Exports
c. Taxes
d. Saving
e. Government borrowing
b
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A decrease in the expected future domestic exchange rate causes the demand for domestic assets to shift to the ________ and the domestic currency to ________, everything else held constant
A) right; appreciate B) right; depreciate C) left; appreciate D) left; depreciate
One problem with conflicts of interest is that they can reduce the ________ in financial markets, thereby increasing ________
A) quantity of information; financial institutions' profits B) quantity of information; asymmetric information C) quality of information; asymmetric information D) quality of information; financial institutions' profits
Which of the following serve as automatic stabilizers?
a. Transfer payments b. Prices c. Imports d. All of the above serve as automatic stabilizers e. None of the above serve as automatic stabilizers
When the economy devotes more of its resources to investment goods, it must devote fewer resources to consumer goods.
Answer the following statement true (T) or false (F)