The Circular Flow Model Illustrates That Aggregate Spending in the Product

question 61

True/False

The circular flow model illustrates that aggregate spending in the product markets equals 70 percent of aggregate income earned in the factor markets.

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Definitions:

Independent Agency

An agency of the United States government that operates independently of the executive departments, responsible for oversight and administration of specific functions.

Federal Deposit Insurance Corporation

A U.S. government agency that provides deposit insurance to depositors in American commercial banks and savings institutions, up to a defined limit.

Consumer Product Safety Commission

A U.S. federal agency responsible for regulating the sale and manufacture of consumer products to ensure they do not pose any unreasonable risk of injury or death to consumers.

Legal Positivism

A theory of law that holds that laws are rules made by human beings and that there is no inherent or necessary connection between law and morality.