Trade between nations A and B:
A. leaves the consumption possibilities of nation A unchanged.
B. leaves the consumption possibilities of nation B unchanged.
C. increases the consumption possibilities of both nations.
D. increases the production possibilities of both nations.
Answer: C
Economics
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The income flow in the form of resource payments from firms to households, and in the form of revenue from households to firms, is known as the circular flow of money
Indicate whether the statement is true or false
Economics
Central banks get the purchasing power to buy government securities by:
a. Increasing their liabilities in the form of deposits from banks. b. Reducing currency in circulation. c. Making discount loans to banks. d. Taking loans from the government. e. All of the above.
Economics