If Some Income Earned by Households Is Not Spent on Output

question 34

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

---

Definitions:

Tide

The periodic rise and fall of sea levels caused by the gravitational interactions between the Earth, Moon, and Sun.

Rapid Erosion

The quick removal of soil and rock from the Earth's surface by natural processes like flowing water or wind.

Cliff

A steep face of rock and soil, often formed by erosional processes along coastlines, riverbanks, or in mountainous regions.

Delta

A nearly flat tract of land formed by deposition of sediment at the mouth of a river or stream.