5. For example, a firm will pay to a household for the service of their labor, th then become household 6. Households have three primary expenditures with their income and taxes. 7. Firms have three primary expenditures with their revenues(and other resource costs) into capital, and taxes. 8. Themarket is an intermediary between households that save and firms that borrow to invest. 9. This market is sometimes called the funds market. 10. is deferred consumption.

5. For example, a firm will pay to a household for the service of their labor, th then become household 6. Households have three primary expenditures with their income and taxes. 7. Firms have three primary expenditures with their revenues(and other resource costs) into capital, and taxes. 8. Themarket is an intermediary between households that save and firms that borrow to invest. 9. This market is sometimes called the funds market. 10. is deferred consumption.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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