Answer to Question #131556 in Macroeconomics for max

Question

Which of the following statements is correct? (2)
(a) Imports represent an injection into the circular flow while exports represent a
withdrawal from the circular flow.
(b) A closed economy is one in which anyone is free to participate.
(c) Firms purchase in the factor market and sell in the goods market while households
purchase in the goods market and sell in the factor market.
(d) Consumption is a stock variable

Answer 1

(c) Firms purchase in the factor market and sell in the goods market while householdsp purchase in the goods market and sell in the factor market.