Savings and investments in the circular flow model are
a. ignored
b. part of the firms' payments
c. equal to each other and therefore cancel out
d. generated by household earnings
e. part of the economy's money flows
A
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In general, which of the following do NOT tend to increase trade between two countries?
A) linguistic and/or cultural affinity B) historical ties C) larger economies D) mutual membership in preferential trade agreements E) the existence of well controlled borders between countries
If the government removes a binding price ceiling from a market, then the price paid by buyers will
a. increase, and the quantity exchanged will increase. b. increase, and the quantity exchanged will decrease. c. decrease, and the quantity exchanged will increase. d. decrease, and the quantity exchanged will decrease.
When one commercial bank borrows from another commercial bank, it pays the __________ rate
A) discount B) bank interest C) federal funds D) prime E) none of the above
The benefit of a mixed strategy is
A. lower risks for both the players in the market. B. the element of consistency that baffles rivals. C. the element of surprise that baffles rivals. D. higher returns for both the players in the market.