Which of the following are represented by the same flow in the circular flow model?
A) the flow of costs and the flow of revenue
B) the flow of goods and the flow of factors of production
C) the flow of income earned from the sale of resources and the flow of expenditures on goods and services
D) the flow of income received by households and the flow of tax revenues paid by firms
A
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When an individual or firm in the United States requests that a bank sell foreign exchange, the bank will probably
A) call a foreign bank and arrange a purchase. B) call the central bank and arrange a purchase. C) call another bank customer with foreign exchange holdings. D) call another domestic bank and arrange a purchase. E) call a foreign exchange broker and arrange a purchase.
Generally, which of the following is the most common reason why countries that experienced a financial crisis could not maintain their fixed exchange rate?
a. They were exporting too many commodities. b. The rates they had established were not in accordance with directives from the IMF. c. The exchange rate parities established were inconsistent with their corresponding macroeconomic policies. d. The general public refused to participate. e. The parities established made their currencies undervalued.