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:

Final Cash Flow

Final Cash Flow is the last cash inflow or outflow in a series of transactions, often associated with the termination or exit of an investment.

New Product Design

The process of creating a new product to be sold by a business to its customers.

Accounts Receivable

Financial obligations of customers towards a company for delivered but unpaid goods or services.