Which Statement Is TRUE in the Case of the Simple

question 110

Multiple Choice

Which statement is TRUE in the case of the simple circular flow model with no savings?

• A) Total spending is greater than total income.
• B) Total spending equals total income only at full employment.
• C) Total spending equals total income.
• D) Total spending is less than total income.

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Definitions:

Demographics

Statistical data relating to the population and particular groups within it, often used in marketing to segment markets by age, gender, income level, and other attributes.

Consumer Behaviour

The study of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences.

Demographics

Statistical data related to the characteristics of a population, such as age, gender, income, and education.

Psychographics

The analysis and grouping of individuals according to psychological characteristics like their desires and viewpoints, chiefly applied in marketing studies.