In the circular flow model,
A) the government has no direct interaction with either households or firms.
B) the government is represented as a separate market.
C) the government buys goods and services from firms.
D) goods and services are sold by households and purchased by firms.
E) factor markets are where goods rather than services are bought and sold.
C
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If a corporate bond with a face value of $1,000 pays yearly coupon payments of $40, what is the coupon rate?
A) 2.5% B) 4% C) 25% D) 40%
If the Consumer Price Index was 165 in one year and 175 in the next year, then the rate of inflation from one year to the next was approximately:
A. 6.1 percent. B. 5.7 percent. C. 7.5 percent. D. 4.3 percent.
When groups of mortgages are bundled together by financial institutions and sold to investors, these institutions are said to be ________ mortgage loans
A) securitizing B) underwriting C) liquidating D) harvesting
If the economy is operating at full employment when its aggregate demand curve is AD2, then a further increase in consumption and investment spending will cause:
Refer to the figure above.
A. Cost-push inflation, and the new equilibrium output will be less than Q2
B. Demand-pull inflation, and the new equilibrium output will be less than Q2
C. Demand-pull inflation, and the new equilibrium output will be more than Q2
D. Cost-push inflation, and the new equilibrium output will be more than Q2