Figure 2-1 -Refer to Figure 2-1.What Does the Arrow Going from Oval

question 370

Short Answer

Figure 2-1
-Refer to Figure 2-1.What does the arrow going from oval B to rectangle 2 represent in the figure?

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Definitions:

Higher Rate

A term that generally indicates a rate (of interest, tax, etc.) that is above the normal or average level.

Capital Goods

Long-term assets that are used in the production of other goods and services, such as buildings, machinery, and equipment, which are not consumed in the production process.

Borrows

refers to the act of obtaining money, goods, or services in exchange for a promise of future repayment.

Financial System

A network of institutions, markets, instruments, and mechanisms that facilitate the exchange of funds and the allocation of resources in an economy.