An example of a money flow in the circular flow diagram is
A) a student's payment of tuition to her university.
B) the government's operation of the court system.
C) the government's financing of the national debt.
D) a firm's production of goods to sell to a foreign country.
E) a farmer's use of land to grow wheat.
A
You might also like to view...
Double taxation of corporate profits
A. imposes losses on investors’ incentives in corporate stock. B. tends to keep corporations out of low-profit activities. C. makes the allocation of resources more efficient. D. makes issuing new stock prohibitively expensive.
Progressive income taxes are designed to
a. make the distribution of income less equal. b. leave unchanged the distribution of income. c. let the market determine the distribution of income after taxes. d. make the distribution of income more equal.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real exchange rate and the monetary base in the context of the Three-Sector-Model? Assume the nominal exchange rate is stated
as: (foreign currency per domestic currency). a. The real exchange rate rises and monetary base rises. b. The real exchange rate falls and monetary base falls. c. The real exchange rate rises and monetary base falls. d. The real exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The nominal interest rate and the real interest rate would be identical with low inflation
Indicate whether the statement is true or false