The flows of money compared to the flow of resources, goods, and services in the circular flow model
a. occur only once, then they become stocks (as opposed to flows)
b. are equivalent when the number of households equals the number of firms
c. move in the same direction as long as payments equal revenue
d. always lag behind the flow of resources, goods, and services
e. move in the opposite direction
E
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At any given time, about 95% of the population in the United States lacks health insurance.
A. True B. False C. Uncertain
Which of the following is included in the investment category under the expenditure approach to GDP accounting?
a. stocks b. bonds c. durable goods d. additions to business inventories
Which of the following is true? a. The tax multiplier is smaller than the government spending multiplier
b. The government cannot stimulate consumer spending through tax cuts. c. The government spending multiplier is smaller than the tax multiplier. d. The government can stimulate consumer spending through decreases in transfer payments.
Explain how a firm decides how much in loanable funds it will demand