1/Money is: A.None of the answers is correct. B.paper money and coins but not ch

Question

1/Money is:

A.None of the answers is correct.

B.paper money and coins but not checks.

C.anything that can easily be used to buy goods and services.

D.currency and stocks.

2/ Figure: Circular-Flow Model

Reference: Ref 7-1

(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. What are net exports?

A.$100

B.$60

C.$30

D.$0

3/An example of an automatic stabilizer is:

A.tax receipts rising when GDP rises.

B.government transfers rising when GDP rises.

C.a discretionary increase in taxes.

D.government purchases of goods and services rising when GDP rises.

4/

Figure: Expanded Circular-Flow Model

Reference: Ref 7-2

(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. The total flow of funds into and out of financial markets is:

A.$70.

B.$110.

C.$300.

D.$170.

Explanation / Answer

1/Money is: C.anything that can easily be used to buy goods and services.

2/ Figure: Circular-Flow Model

Reference: Ref 7-1

(Figure: Circular-Flow Model) Look at the figure Circular-Flow Model. What are net exports?

B.$60

3/An example of an automatic stabilizer is:

D.government purchases of goods and services rising when GDP rises.

Its because when GDP rises it means the production of goods and services have rised. so if govt buys them same time it does like automatic stabilizer of economy.

4/

Figure: Expanded Circular-Flow Model

Reference: Ref 7-2

(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. The total flow of funds into and out of financial markets is:

D.$170.

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