The decisions of firms and households are
A) coordinated by but not totally controlled by the government.
B) made independently of one another.
C) controlled by but not totally coordinated by the government.
D) coordinated by markets.
E) unexplainable by the circular flow model.
D
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On what kind of income is our tax system based?
A) nominal B) adjusted C) real D) inflationary
The expansionary monetary and fiscal policies of the 1960s resulted in ________ inflation rates and ________ rates of unemployment
A) high; high B) low; high C) high; low D) low; low
The largest component of U.S. federal spending that contributes to the U.S. government budget deficit is
A) entitlements. B) military spending. C) interest expenses. D) salaries of government employees.
Assume that the Paris First National Bank's loan position contracted from $16 million to $12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
a. $5 million. b. $10 million. c. $15 million. d. $20 million. e. $24 million.