When households and businesses interact in resource markets money
a. is not exchanged
b. is flowing toward businesses
c. is flowing toward households
d. is not used at all
e. is flowing to both businesses and households
C
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What will be an ideal response?
An elasticity is a measure of sensitivity
Indicate whether the statement is true or false
Suppose the money supply tripled, but at the same time velocity doubled and real GDP was unchanged. According to the quantity equation the price level
a. is 1.5 times its old value. b. is 3 times its old value. c. is 6 times its old value. d. is the same as its old value.
The demand for goods reflects people's values
A) and so does the supply of goods. B) but the supply of goods rests on objective realities rather than values. C) insofar as they are material values. D) insofar as they can be satisfied by spending money. E) insofar as the demand is completely inelastic.