In the Circular Flow Model with the Government Sector,transfers

question 151

Multiple Choice

In the circular flow model with the government sector,transfers

• A) flow in the same direction as do taxes.
• B) flow in the opposite direction as do taxes.
• C) to households flow in the same direction as do expenditures on goods and services.
• D) to firms flow in the same direction as do rent, wages, interest, and profits.
• E) flow only through the goods market.

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Definitions:

Optimal Risky Portfolio

An optimal risky portfolio is a collection of financial assets that maximizes expected return for a given level of risk or minimizes risk for a given level of expected return.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatter plot.

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk.