The circular flow diagram shows that the flow of payments to the factors used to produce goods and services exceeds the flow of payments for final goods and services
Indicate whether the statement is true or false
FALSE
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Putting a decision into action is called?
a. Visualization b. Implementation c. Satisficing d. Reactivity
When wages decrease a. the substitution effect increases the quantity of labor supplied. b. the substitution effect increases the supply of labor
c. the income effect increases the quantity of labor supplied. d. the income effect increases the supply of labor.
The federal funds rate is the interest rate:
a. The Federal Reserve changes banks that borrow from it. b. U.S. financial institutions charge their best customers. c. On U.S. interbank loans. d. Central banks charge individuals. e. U.S. financial institutions pay to their best (i.e., largest) depositors.
A falling interest rate ________ the number of investment projects having a positive profit rate, and thus ________ the amount of output that firms demand for themselves
A) increases, raises B) increases, lowers C) decreases, raises D) decreases, lower