The circular flow principle guarantees that in equilibrium
A) the level of aggregate demand will be greater than output.
B) the level of investment spending will be equal to the level of household saving.
C) the level of aggregate demand will be equal to output.
D) the level of government spending will be equal to tax revenue.
Correct Answer:
Verified
Q9: Businesses borrow money because they
A) have no
Q10: The market in which the real interest
Q11: In the model developed in the text,
Q12: The price of loanable funds is
A) the
Q13: If total saving increases,
A) the real interest
Q15: The equilibrium condition in the financial markets
Q16: The equilibrium condition in the financial markets
Q17: The negative of net exports represents
A) the
Q18: If net exports are less than zero,
A)
Q19: If foreigners have more dollars than they
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