In the Circular Flow Model, the Expenditures on Goods and Services

question 161

Multiple Choice

In the circular flow model, the expenditures on goods and services flow in the

• A)same direction as goods and services in all cases.
• B)same direction as factor markets.
• C)same direction as goods and services only if they both flow through the goods market.
• D)same direction as goods and services only if they both flow through the factor market.
• E)opposite direction as goods and services.

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Definitions:

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