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

Economics

You might also like to view...

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

Economics

Direct costs of a public sector investment project are generally easier to measure than the direct benefits

a. true b. false

Economics

Which of the following countries cannot use monetary expansion in order to reduce youth unemployment?

a. South Africa b. Spain c. India d. Greece

Economics

The shortest time lag for monetary policy is the implementation lag.

a. true b. false

Economics