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Managing in a global economy demystifying international macroeconomics 2nd edition marthinsen test bank

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The circular flow diagram divides the economy into: a.. Domestic sector and foreign sector.. The circular flow diagram divides the economy into: *a.. Domestic sector and foreign sector..

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1 The circular flow diagram divides the economy into:

a Domestic sector and foreign sector

b Agricultural sector and non-agricultural sector

*c Producer sector and consumer sector

d Operating sector and non-operating sector

e Real sector and nominal sector

2 The circular flow diagram divides the economy into:

*a Producer sector and consumer sector

b Real sector and nominal sector

c Domestic sector and foreign sector

d Operating sector and non-operating sector

e Winners and losers

3 The circular flow diagram divides the economy into:

a Winners and losers

b Real sector and nominal sector

c Domestic sector and foreign sector

d Agricultural sector and non-agricultural sector

*e Producer sector and consumer sector

4 The circular flow diagram divides the economy into:

*a Household sector and business sector

b Real sector and nominal sector

c Domestic sector and foreign sector

d Agricultural sector and non-agricultural sector

e None of the above is correct

5 One of the major points of the circular flow diagram is:

*a If GDP rises due to increased production, incomes earned from producing GDP must rise

b Increasing gross private domestic investment is the best way for a nation to grow

c Increasing government spending is the best way for a nation to grow

d The top and bottom flows are proof that most economies should always be in equilibrium

e None of the above

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