The Two Flows, or Things Being Exchanged, in the Circular

question 131

Multiple Choice

The two flows, or things being exchanged, in the circular flow model are:

• A) inputs and outputs.
• B) imports and exports.
• C) inputs/outputs and money.
• D) land and labor.

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Definitions:

Exchange Rate

The worth of one currency compared to another, establishing the amount of one currency equivalent in another currency for conversion purposes.

U.S. Dollars

The official currency of the United States, used as a standard monetary unit in international finance.

Danish Krone

The official currency of Denmark, Faroe Islands, and Greenland.

U.S. Dollars

The legal tender of the United States, denoted by the symbol $.