In a circular flow diagram, i. the value of production = ...

[sabina]

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.

[kishoreddi]

Answer to Question 1

E

Answer to Question 2

D

[sabina]

Excellent

[pratush dev]

Gracias!