Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income

All of the following are examples of spending on goods and services in the circular flow model except

A) Chaitanya buys a new spa pedicure chair for her expanding nail salon business. B) Hernan buys a pizza at Papa C's. C) Lenny buys a new digital camera to take pictures at his son's graduation. D) Amanda purchases a new electric guitar to pursue her hobby seriously.

Under the current managed float exchange rate regime, countries with balance of payments ________ frequently do not want to see their currencies ________ because it makes foreign goods more expensive for domestic consumers and can stimulate inflation

. A) surpluses; depreciate B) deficits; depreciate C) surpluses; appreciate D) deficits; appreciate