The Figure Given Below Represents the Circular Flow of Income

question 7

Multiple Choice

The figure given below represents the circular flow of income between households,firms,financial intermediaries,and foreign countries. Figure 4.2
- Refer to Figure 4.2.Assume investment spending decreases by $4,000.Everything else being the same,what must be the new value of net trade flows in order to maintain total expenditures on business firms' output at $35,000?

• A)-$2,500
• B)-$1,500
• C)$3,500
• D)$6,500
• E)$7,500

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Definitions:

Condom

a barrier device used during sexual intercourse to reduce the probability of pregnancy and the spread of sexually transmitted infections.

Menopause

The period marking the end of a woman's reproductive years, characterized by the cessation of menstruation and marked hormonal changes.

Age-Related Changes

Natural transformations and modifications that occur in the human body as part of the aging process.

Orgasms

The climax of sexual stimulation, characterized by intense pleasure and release of sexual tension.