Use the following figure to answer the next question.
If box E represents government, box D the resource market, and box B the product market, then flows (5) and (7) represent
A. goods and services.
B. net taxes.
C. resources.
D. government expenditures.
Answer: D
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Other things being equal, a decrease in an economy's exports will
A. decrease domestic aggregate expenditures and the equilibrium level of GDP. B. increase domestic aggregate expenditures and the equilibrium level of GDP. C. increase the amount of imports consumed by the private sector. D. have no effect on domestic GDP because imports will offset the change in exports.
Of the following, the riskiest assets held by commercial banks are
A) reserves. B) U.S. government bonds. C) U.S. government Treasury bills. D) loans.
In addition to tariff lowering provisions, the NAFTA agreement includes two side agreements on
A) Mexican exchange rate policy and Mexican foreign policy. B) U.S. exchange rate policy and U.S. foreign policy. C) environmental and labor market issues. D) All of the above.
If a firm buys the assets of a firm with cash, it may be in violation of the Celler-Kefauver Act
a. True b. False Indicate whether the statement is true or false