Which of the following statements about the circular flow model is false?
A) Consumers earn income by selling resources they own to businesses.
B) Businesses supply goods and services to the household sector.
C) Households supply resources to the business sector.
D) Business firms buy goods and services from the household sector.
D
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Use Tobin's q theory and the neoclassical theory of investment to explain how optimistic scenarios of the "information age" would cause overinvestment in computer-related capital goods, and how that overinvestment would cause a sudden reversal
What will be an ideal response?
The voting members of the Open Market Committee are
a. the 7 Governors of the Federal Reserve System. b. the 12 presidents of the Federal Reserve Banks. c. the 7 Governors and the Chairman of the Council of Economic Advisors. d. the 7 Governors and 5 of the presidents of the 12 regional Federal Reserve Banks.