Refer to the Above Figure

question 68

Multiple Choice

Refer to the above figure.If box A represents businesses and box B represents the resource market in this circular flow model,then the real flow of goods,services,and economic resources would be represented by flows:

• A) (1),(3),(6),and (8).
• B) (7),(5),(4),and (2).
• C) (1),(2),(3),and (4).
• D) (5),(6),(7),and (8).

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Definitions:

Coupons

The interest payments made to bondholders, typically on an annual or semi-annual basis.

Yield-to-maturity

The total return anticipated on a bond if it is held until the end of its lifetime, taking into account both interest payments and capital gains or losses.

After-tax Rate

The rate of return on an investment after accounting for taxes, giving a more accurate reflection of the actual take-home returns.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the tax rate you would pay on one additional dollar of income.