If Some Income Earned by Households Is Not Spent on Output,or

question 52

Multiple Choice

If some income earned by households is not spent on output,or if some income earned by firms is not spent on factor services,the circular flow of income will

• A)stop.
• B)run over.
• C)expand.
• D)contract.
• E)explode.

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Definitions:

Translated Income Statement

An income statement that has been converted from one currency to another, typically involved in the financial reporting of multinational companies.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its original purchase price.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life.

Translated Income Statement

An income statement that has been converted from one currency into another currency, typically used by multinational corporations to consolidate foreign operations.