Describe the government's flows in the circular flow model of the economy
What will be an ideal response?
The government has several flows in the circular flow model. First, the government taxes households and firms. Hence, funds flow from households and firms to the government. Second, the government transfers income back to households, via payments such as social security. In this case, funds flow from the government to households. The government also purchases goods and services from firms in the goods market. In this case, goods and services flow to the government and payments flow to firms.
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For a specific change in the yield to maturity
A) the shorter the time until a bond matures, the greater will be the change in its price. B) the longer the time until a bond matures, the greater will be the change in its price. C) the longer the time until a bond matures, the greater will be the change in its par value. D) the shorter the time until a bond matures, the greater will be the change in its coupon rate.
What properties distinguish private goods from public goods?
a. preventive and curative b. exclusiveness and rivalry c. social and cooperative d. merit and lack of merit e. market and nonmarket