In the Circular-Flow Diagram,the Flow of Money Going into Each

question 143

Multiple Choice

In the circular-flow diagram,the flow of money going into each sector or market is _____ the flow of money coming out of that market or sector.

• A)equal to
• B)greater than
• C)less than
• D)unrelated to

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Definitions:

Purchases Discount

Purchases discount is a reduction in the price paid for goods or services, often granted to a buyer when payment is made within a specified period.

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or other entity.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, indicating its usual increase direction.

Account Nature

Refers to the classification of an account as either an asset, liability, equity, revenue, or expense, which dictates its role and presentation in financial statements.