When people trade goods for money, money is being used as a medium of exchange
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following expenditures is for an intermediate good?
A) The government buys new tires for its military vehicles. B) A U.S. tire firm sells new tires to Canada. C) General Motors buys new tires to put on the cars it's building. D) You buy new tires for your used car.
Most businesses in the United States are ________, and the type of business organization that accounts for the LEAST amount of total revenues is ________
A) proprietorships; partnerships B) corporations; proprietorships C) proprietorships; proprietorships D) corporations; partnerships
According to the Keynesian view, as interest rates fall
a. people will hold more money b. people will hold less money c. people will increase interest-yielding asset holdings d. the quantity demanded of investment goods will fall e. the economy's aggregate demand will contract
Based on the circular flow diagram, which of the following is part of a circular flow?
a. rest of the world’s expenditures on exports and government purchases of goods
b. household expenditures on goods and government purchases of goods
c. household expenditures on goods and firms paying wages
d. taxes paid to government and firms borrowing for investment