Imports are leakages from the circular flow of income and expenditure model
a. True
b. False
Indicate whether the statement is true or false
True
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A decrease in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
According to the textbook, some people refer to the period from ___________________ as the First Era of globalization
A) the late 1700s to the late 1800s B) the mid-1900s to the late 1980s C) the late 1600s to the mid-1800s D) the mid-1800s to the late 1920s
Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. When Leo's earnings are less than $300, each extra dollar he earns causes his total income (earnings plus benefits) to:
A. fall by 50 cents. B. fall by 25 cents. C. rise by 50 cents. D. rise by 75 cents.
An example of capital is:
A) cash. B) a factory building. C) money in a checking account. D) the existing state of technology.