The circular flow of income shows
A. goods and services flowing in one direction and money payments in the other direction.
B. goods and money payments flowing in one direction and services flowing in the opposite direction.
C. goods, services, and money payments flowing in the same direction.
D. goods flowing in one direction and services and money payments flowing in the other direction.
Answer: A
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When the Fed purchases government securities,
A) required reserves in the banking system decrease, leading to fewer loans being made. B) required reserves in the banking system increase, leading to more loans being made. C) the monetary base does not change. D) excess reserves in the banking system decrease, leading to fewer loans being made. E) excess reserves in the banking system increase, leading to more loans being made.
What are the major factors that a country should weigh in deciding whether a particular foreign investment should be permitted?
What will be an ideal response?
With a managed float, monetary disequilibrium is eliminated through
A) international reserve flows. B) exchange rate changes. C) international reserve flows and exchange rate changes. D) None of the above.
The European Union became an economic union with the implementation of which treaty?
A) Treaty of Rome B) Single Europe Treaty C) Delor's Agreement D) Treaty on European Union E) Schengen Agreement