Answer the following questions true (T) or false (F)
1. A complete circular flow of the economy includes both the government sector and the financial markets.
2. Net exports of goods and services is equal to imports minus exports.
3. If personal income is equal to $3,000 and consumers spend $3,600, the level of savings in the economy would $600.
1. TRUE
2. FALSE
3. FALSE
You might also like to view...
How did the European single currency evolved?
What will be an ideal response?
Suppose that one-year Treasury bills yield 4 percent in the United States and 5 percent in Germany. Investors will be indifferent between them if they expect the dollar over the next year to
A) depreciate against the euro by approximately 1 percent. B) appreciate against the euro by approximately 1 percent. C) depreciate against the euro by exactly 20 percent. D) appreciate against the euro by exactly 20 percent.
According to the above table, if the marginal revenue product is $24, how many workers will the profit maximizing monopsonist hire?
A) 4 B) 5 C) 6 D) 7
A binding price ceiling causes a shortage in the market
a. True b. False Indicate whether the statement is true or false