In the circular flow model, A) the government has no direct ...

[madam-professor]

In the circular flow model,
 
  A) the government has no direct interaction with either households or firms.
  B) the government is represented as a separate market.
  C) the government buys goods and services from firms.
  D) goods and services are sold by households and purchased by firms.
  E) factor markets are where goods rather than services are bought and sold.

Question 2

When the yuan per dollar real exchange rate appreciates:
 
  A) the U.S. net exports to China increase while the Chinese net exports to U.S. decrease.
  B) both the U.S. net exports to China and the Chinese net exports to the U.S. decrease.
  C) the U.S. net exports to China decrease while the Chinese net exports to U.S. increase.
  D) both the U.S. net exports to China and the Chinese net exports to the U.S. increase.

[Fayaz00962]

Answer to Question 1

C

Answer to Question 2

C