Author Question: In a circular flow diagram, i. the value of production = income. ii. the value of production = ... (Read 64 times)

sabina · **on:** Jun 30, 2018

In a circular flow diagram,

i. the value of production = income.
ii. the value of production = expenditure.
iii. expenditure = income.
A) i and ii are true statements.
B) i and iii are true statements.
C) Only iii is a true statement.
D) Only i is a true statement.
E) i, ii and iii are true statements.

Question 2

Assuming all excess reserves are loaned out, if the reserve ratio is 1 percent, the money multiplier will be equal to

A) 1. B) 10. C) 11. D) 100.