Using this outline (see Graph 2-10), insert arrows and complete the circular-flow diagram representing the interactions between households and firms in a simple economy.Explain briefly the various parts of the diagram.Graph 2-10 
Definitions:
Market Rate
The prevailing interest rate available in the marketplace for securities or loans of a similar risk and maturity profile.
Constant Dividend
A dividend policy in which a company pays a fixed amount in dividends to shareholders permanently or over a long period.
Required Return
The lowest profit anticipated by an investor from a specific investment, considering the associated risks.
Dividend
A portion of a company's earnings distributed to shareholders, usually in cash or additional stock.
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