Which of the following is the injection into the circular flow model?
A. Money deposited in a savings account
B. Income earned through exports
C. Goods imported from abroad
D. Taxes paid by the individuals
Answer: B
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A country undertakes a devaluation in order to
A) decrease its net exports. B) raise the value at which its currency is pegged. C) move to a flexible exchange rate system. D) increase its net exports.
Refer to Scenario 14.4. Suppose that a subsidy is implemented on each unit of labor hired. Then the number of workers hired
A) will decrease. B) will increase. C) will not change. D) will change in an indeterminate fashion.
If the reserve requirement is 10 percent, which of the following pairs of changes would both allow a bank to lend out an additional $10,000?
a. the Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank b. the Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000 c. the Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank d. the Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000
Enterprise managers and workers in the Soviet Union often resisted innovations in production methods because:
A. production targets were often increased when innovation occurred. B. there was a chronic shortage of computers. C. workers could not be reallocated geographically. D. innovations ordinarily increased dependence on world markets.