Which of the following is consistent with the circular flow of income?
I. Goods and services flow in one direction.
II. Payments and incomes flow in one direction.
III. Sellers receive less than what buyers spend.
A) I only B) II only C) III only D) Both I and II
D
You might also like to view...
If policymakers are expected to increase the money supply, then Monetarists argue that bond demand and thus prices will __________
When it occurs, the actual increase in the money supply will have no further effect on bond prices and thus the anticipated higher inflation rate will cause interest rates to __________. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
When a nation totally bans trade with another country, it is imposing a(n):
A. tariff. B. embargo. C. quota. D. trade tax.
What is GATT and what happened to tariff rates as a result of GATT?
What will be an ideal response?
How does the study of microeconomics differ from that of macroeconomics? Give one example each of an issue studied in microeconomics and in macroeconomics
What will be an ideal response?