Monetary savings represents a leakage in the circular flow of an economy because it __________. A.)...
Monetary savings represents a leakage in the circular flow of an economy because it __________.
A.) is of no use to the economy
B.) increases the size of the flow
C.) is used to purchase imports
D.) is income not consumed
Homework Answers
"D"
monetary saving is the income that was not consumed in the market that is why it represents the leakage i.e. non expenditure.
Add Answer to:
Monetary savings represents a leakage in the circular flow of an
economy because it __________.
A.)...
What is meant by the term the marginal leakage rate? a Total leakages as a fraction...
What is meant by the term the marginal leakage rate? a Total leakages as a fraction of aggregate expenditures. b Total leakages as a fraction of the level of income. c The ratio of change in income that results from a change in leakages. d The ratio of change in leakages that results from a change in income. What is the value of the MPE if MPC = 0.63; MPM = 0.1 a 0.053 b 0.53 c 0.73 d 0.83...
CONTEXT: Circular Flow Diagram: Represents flow of monetary transactions (money goods and services) in an economy....
CONTEXT: Circular Flow Diagram: Represents flow of monetary transactions (money goods and services) in an economy. Show how a specific series of exchanges of goods, services and payments make up the building blocks of a given economic system of interest. There should be only two economic actors in your CFD. What are these 2? Firms- Producers and Households-Consumers **QUESTION TO SOLVE --Each of these is what we call a “maximizing agent”, which means that each of them strives to maximize...
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. eco...
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows...
The following diagram presents
a circular-flow model of a simple economy. The outer set of arrows
(shown in green) shows the flow of dollars, and the inner set of
arrows (shown in red) shows the corresponding flow of inputs and
outputs.
Which of the following is true regarding this economic
model?
A) While simple, the circular-flow diagram can still be useful
for the purposes of modeling how dollars and resources move
throughout an economy.
B) Because it does not take...
options for first question: more effective, the same, less effective As compared to a closed economy,...
options for first question: more effective, the same, less
effective
As compared to a closed economy, in an open economy with flexible exchange rates, monetary policy is Expansionary monetary policy is more effective in an open economy with flexible exchange rates because lower interest rates cause the dollar to O A. appreciate, which decreases exports and increases imports. O B. depreciate, which increases exports and decreases imports. O C. appreciate, which increases exports and decreases imports. OD. depreciate, which decreases...
what is the answer? Name the three injections to the circular flow. Select one: O a....
what is the answer?
Name the three injections to the circular flow. Select one: O a. Investment, exports, and government spending O b. Expenses, income, and exports O c. Saving, imports, and taxes d. Consumption, investment, and imports Name the three injections to the circular flow. Select one: O a. Investment, exports, and government spending O b. Expenses, income, and exports O c. Saving, imports, and taxes d. Consumption, investment, and imports
The circular-flow model The following diagram presents a circular-flow model of a simple economy. The outer...
The circular-flow model
The following diagram presents a circular-flow model of a simple
economy. The outer set of arrows (shown in green) shows the flow of
dollars, and the inner set of arrows (shown in red) shows the
corresponding flow of inputs and outputs.
Based on this model, households earn income when
________________ purchase ___________ in factor markets.
Suppose Latasha earns $650 per week working as a programmer for
PC Pros. She uses $9 to order a mojito cocktail at...
1. Why should monetary policy be made by rule rather than discretion? a. because there is...
1. Why should monetary policy be made by rule rather than discretion? a. because there is a clear consensus among economists about what a good monetary policy rule would be b. because rules would eliminate the political business cycle c. because rules respond to any random shocks in the economy d. because rules create time inconsistency 2. Why does Canadian public policy discourage saving? a. because, other things the same, taxes increase the return from savings b. because means-tested programs...
Using the following circular flow diagram, where red marks real flows are blue marks monetary flows,...
Using the following circular flow diagram, where red marks real flows are blue marks monetary flows, match the correct letter in the diagram to the description provided Circular Flow Diagram Resource Market Product Market a. Land, labor, capital, and entrepreneurial activity:A b. Households: (Click to select) C. Consumer expenditures: Click to select d. Costs. | (Click to select) e. Money income: (Click to select) f. Resources: (Click to select) g. Businesses: Click to select) h. Revenue: (Click to select)) i....
1. The expanded circular-flow diagram Aa Aa The diagram below shows an expansive circular-flow diagram for the U.S. economy, with arrows pointing in the direction that money flows. To facilitate reference, letter labels have been placed on certain arrows of the diagram Government purchases of goods and services Government borrowing Government Taxes Government transfers Private savings Households Wages, profit, interest, Consumer spending rent Markets for goods and services Factor markets Financial markets Gross Wages, profit, interest, rent domestic Borrowing and...
2. The circular flow of income and expenditure The income and expenditure approaches to measuring a nation's GDP can be combined using the circular flow model. Categorize each flow in the following table as part of either aggregate demand or national income. Flow Aggregate Demand National Income Net taxes (NT) O Investment spending (1) Consumption (C) Government purchases (G) OOO Net exports (X - IM) Disposable income (DI) 0 While national income and domestic product must be equal, income must...
The following diagram presents
a circular-flow model of a simple economy. The outer set of arrows
(shown in green) shows the flow of dollars, and the inner set of
arrows (shown in red) shows the corresponding flow of inputs and
outputs.
Which of the following is true regarding this economic
model?
A) While simple, the circular-flow diagram can still be useful
for the purposes of modeling how dollars and resources move
throughout an economy.
B) Because it does not take...
options for first question: more effective, the same, less
effective
As compared to a closed economy, in an open economy with flexible exchange rates, monetary policy is Expansionary monetary policy is more effective in an open economy with flexible exchange rates because lower interest rates cause the dollar to O A. appreciate, which decreases exports and increases imports. O B. depreciate, which increases exports and decreases imports. O C. appreciate, which increases exports and decreases imports. OD. depreciate, which decreases...
what is the answer?
Name the three injections to the circular flow. Select one: O a. Investment, exports, and government spending O b. Expenses, income, and exports O c. Saving, imports, and taxes d. Consumption, investment, and imports Name the three injections to the circular flow. Select one: O a. Investment, exports, and government spending O b. Expenses, income, and exports O c. Saving, imports, and taxes d. Consumption, investment, and imports
The circular-flow model
The following diagram presents a circular-flow model of a simple
economy. The outer set of arrows (shown in green) shows the flow of
dollars, and the inner set of arrows (shown in red) shows the
corresponding flow of inputs and outputs.
Based on this model, households earn income when
________________ purchase ___________ in factor markets.
Suppose Latasha earns $650 per week working as a programmer for
PC Pros. She uses $9 to order a mojito cocktail at...
Using the following circular flow diagram, where red marks real flows are blue marks monetary flows, match the correct letter in the diagram to the description provided Circular Flow Diagram Resource Market Product Market a. Land, labor, capital, and entrepreneurial activity:A b. Households: (Click to select) C. Consumer expenditures: Click to select d. Costs. | (Click to select) e. Money income: (Click to select) f. Resources: (Click to select) g. Businesses: Click to select) h. Revenue: (Click to select)) i....
Most questions answered within 3 hours.
-
Estimate the diffusion coefficient for methyl phenyl sulfide in
water at 25 degrees Celcius.
asked 34 minutes ago -
10.g of a certain metal absorb 40. cal of heat and the temperature
is abserved to...
asked 1 hour ago -
The time to complete a standardized exam is approximately normal
with a mean of 70 minutes...
asked 1 hour ago -
Two thousand randomly selected adults were asked whether or not
they have ever shopped on the...
asked 1 hour ago -
How many milliliters of 0.0695 M Ca( OH)
2would be required to exactly neutralize 176 mL...
asked 2 hours ago -
A telephone survey uses a random digit dialing machine to call
subjects. The random digit dialing...
asked 2 hours ago -
How can having too little or too much of a certain
protein cause problems for an...
asked 4 hours ago -
Assume a muscle has a PCSA = 20 cm2 and Lo = 12 cm. Assume it...
asked 5 hours ago -
What is the yield to maturity of a ten-year, $1,000 bond with a
5.2% coupon rate...
asked 6 hours ago -
A mass m = 5 kg is tied on one end of a rope and is...
asked 6 hours ago -
The Average sales price of single-family houses in Charlotte is
$210,000 with a standard deviation of...
asked 6 hours ago -
Target Costing
Laser Impressions, Inc., manufactures color laser printers.
Model J20 presently sells for $225 and...
asked 6 hours ago