What is the circular flow of income and output?

Question

What is the circular flow of income and output? What is meant by real gross domestic product? What are the different types of financial markets?

Expert · Accepted Answer

Money and Banking Exam 1 Study Guide:     ● Financial Markets           ○ Markets that channel funds from those who have an excess of funds to those               with a shortage.                  ■ Financial markets promote economic efficiency.            ○ These markets match borrowers with lenders.           ○ Minimize transaction costs.                   ■ Economies of scale ­ more you produce, the less it costs.           ○ Asymmetric information                    ■ an inequality of information between borrowers and lenders.                        ● Adverse selection ­ problem of asymmetric info. before a loan.                        ● Moral hazard ­ problem after loan takes place.           ○ Examples of financial markets

What is the circular flow of income and output?

What is the circular flow of income and output? Description

School: Florida Atlantic University

Department: Ecosystem Science and Policy

Course: Money and Banking

Professor: Eric levy

Term: Fall 2018

Tags:

Cost: 50

Name: Money and Banking Exam 1 Study Guide

Description: Study guide consisted of first two weeks of lectures.

Uploaded: 09/06/2018

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What is the circular flow of income and output?
Description