In the extended version of the circular flow model, money flows from
a. households to firms as payments for resources
b. households to foreign economies as payments for exports
c. government to firms as tax payments
d. foreign economies to firms as payments for imports
e. firms to households as payments for resources
E
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A closed economy
a. does not trade with other economies. b. is centrally-planned. c. does not allow financial intermediation. d. All of the above are correct.
In 2012, Trailblazer Bicycle Company produced a mountain bike that was delivered to a retail outlet in November 2012. The bicycle was sold to E.Z. Ryder in March 2013. This bicycle is counted as:
A. consumption in 2012 and as negative investment in 2013. B. negative investment in 2012 and as consumption in 2013. C. negative investment in 2012 and as investment in 2013. D. investment in 2012 and as negative investment in 2013.