Every ________ Requires a ________

question 27

Multiple Choice

Every ________ requires a ________.

• A) savings dollar; foreign investment dollar
• B) investment dollar; savings dollar
• C) dollar of loanable funds; dollar of wages earned
• D) dollar of government borrowing; dollar of foreign borrowing
• E) dollar of exports; dollar of imports

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Definitions:

Circular-Flow Diagram

A model that illustrates the flow of goods and services and money between households and businesses in an economy.

Households

Economic units comprising all persons who occupy a housing unit, responsible for making consumption and investment decisions.

Demanders

Individuals or entities that express a willingness and ability to purchase goods or services at a given price.

Suppliers

Businesses or individuals that provide goods or services to another entity under terms specified in a contract.