The circular flow diagram divides the economy into:

a. Producer sector and consumer sector.
b. Real sector and nominal sector.
c. Domestic sector and foreign sector.
d. Operating sector and non-operating sector.
e. Winners and losers.


.A

Economics

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A. only care for those who cannot afford care themselves. B. use prospective payments based on Diagnosis Related Groups. C. let people choose HMOs and use prospective payments based on Diagnosis Related Groups. D. let people choose HMOs.

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Whenever U.S. government spending increases, thereby increasing the demand for real balances and the rate of interest, the currency will appreciate and there is a potential for:

A) overshooting. B) crowding out. C) a Republican backlash. D) recession.

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From 1975 to 1995, the value of the dollar in terms of yen fell from over 300 yen per dollar to about 100 yen per dollar. Considering the impact of this alone, this would likely:

A. make the U.S. AD curve steeper. B. shift the U.S. AD curve to the left. C. shift the U.S. AD curve to the right. D. make the U.S. AD curve flatter.

Economics