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In the circular flow diagram model:
Sponsor
An entity or individual that supports an event, activity, person, or organization financially or through the provision of products or services.
Geometric Average Rate
The average compound return per period over a time span, useful for comparing different investments or portfolios.
Compounding
The process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.
Return
The profit or loss derived from an investment over a certain period, expressed as a percentage of the investment's initial cost.
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