Without foreign trade, the dollars used to buy goods and services are included in the circular flow as consumption, investment, and government spending.
Answer the following statement true (T) or false (F)
True
As income is used to buy goods and services, the money spent is counted as consumption, investment, and government spending in the circular flow.
You might also like to view...
The most important function of money is when money is used as a
A) medium of exchange. B) unit of accounting. C) standard of deferred payment. D) store of value.
In 2009 Al Gore won the Nobel Peace Prize and was awarded $1.4 million. He donated it to his Alliance for Climate Protection. From the economic point of view his charitable project suggests
A) Gore himself no longer faced scarcity because he was in a position to give so much of his money away. B) the Alliance at least temporarily overcame scarcity because they enjoyed free resources. C) it was chosen over other uses of his money, and therefore even Gore had to economize. D) it was a ploy to gain more media attention after his Vice Presidency.