The use of hospitals today is dominated by

Which of the following statements is FALSE?

A) Total income is always greater than total output. B) In the circular flow model, households sell factor services to businesses in return for factor payments. C) Businesses sell goods and services to households who use their income to pay for them. D) The value of total income is equal in value to total output because profit is a cost of production.

If the Fed's monetary policy causes a substantial increase in interest rates, what is the most likely impact on velocity?

a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.