Problem
1. Is a family a household? Is a household a family? Why does the value of output always equal the income received by the resources that produced the output? What does it mean if net exports are negative?
2. Draw the circular flow diagram linking households, business firms, and the international sector. Use the diagram to explain the effects of a decision by the household sector to increase saving
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.