The Following Question Are Based on the Following Circular Flow

question 6

Multiple Choice

The following question are based on the following circular flow diagram:

-In this model of the circular flow,the dollar flows

• A) are clockwise.
• B) are counterclockwise.
• C) on the right side are clockwise and those on the left side are counterclockwise.
• D) on the right side are counterclockwise and those on the left side are clockwise.
• E) on the right side are greater than those on the left side.

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Definitions:

Ownership Percentage

The fraction or percentage of a company that is owned by a shareholder or group of shareholders.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Additional Shares

Extra shares issued by a company, which can result from financing activities, stock splits, or dividend reinvestment plans.