In the circular flow model, there is a money flow of economic resources and finished goods and services and a real flow of income and consumption expenditures.
Answer the following statement true (T) or false (F)
False
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In Problem 14, do firms enter or exit the market in the long run? What is the market price and the equilibrium quantity in the long run?
What will be an ideal response?
In the one-period valuation model, the value of a share of stock today depends upon
A) the present value of both the dividends and the expected sales price. B) only the present value of the future dividends. C) the actual value of the dividends and expected sales price received in one year. D) the future value of dividends and the actual sales price.
The belief that bank failures were regularly caused by fraud or the lack of sufficient bank capital explains, in part, the passage of
A) the National Bank Charter Amendments of 1918. B) the Garn-St. Germain Act of 1982. C) the National Bank Act of 1863. D) Federal Reserve Act of 1913.
During the 1990s and the first decade of the 2000s
a. polls have shown that U.S. citizens are more concerned about inflation than any other national problem b. the U.S. inflation rate reached double digits (10 percent or higher) c. the U.S. economy consistently experienced deflation (a falling price level) d. the U.S. inflation rate averaged about 8 percent per year e. the U.S. inflation rate averaged less than 3 percent per year