According to the Circular Flow Model,an Increase in Spending by Businesses

question 62

True/False

According to the circular flow model,an increase in spending by businesses on productive resources would cause the income and spending of consumers to increase.

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Definitions:

Cost Ledger

A subsidiary ledger containing all cost-related information, including direct and indirect costs ledgers, for a company.

Service Business

A business model focused on delivering non-physical products or services to its consumers.

Overhead

The indirect costs or expenses associated with operating a business, including administrative, office, and rented space expenses.

Materials Ledger

A record of the quantity and value of materials on hand, received, and issued during a period.