Figure 2-2 -Refer to Figure 2-2.If the Outer Loop of This Circular-Flow

question 256

Multiple Choice

Figure 2-2
-Refer to Figure 2-2.If the outer loop of this circular-flow diagram represents flows of dollars,then the inner loop includes

• A)flows of goods and services from households to firms.
• B)flows of inputs from households to firms.
• C)flows of rent payments paid to owners of land.
• D)flows of wages and salaries paid to workers.

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Definitions:

Risk-Free Asset

An investment expected to return its original value without any loss and with absolute certainty, typically associated with government bonds.

Market

A place or system where buyers and sellers interact to trade goods, services, or financial instruments.

Expected Return

The anticipated amount of profit or loss an investment is likely to generate over a specific period.

Stock X

An online marketplace and clothing reseller, primarily of sneakers and streetwear.