In a simple circular-flow diagram, firms
a. purchase resources from households.
b. purchase the output produced by households.
c. receive income by selling resources to households.
d. All of the above are correct.
a
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A(n) __________ in consumer spending will __________ the demand for reserves, resulting in a __________ federal funds rate
A) increase; raise; lower B) increase; raise; higher C) decrease; raise; higher D) decrease; lower; higher
Direct costs of a public sector investment project are generally easier to measure than the direct benefits
a. true b. false
Which of the following countries cannot use monetary expansion in order to reduce youth unemployment?
a. South Africa b. Spain c. India d. Greece
The shortest time lag for monetary policy is the implementation lag.
a. true b. false