The Circular Flow Model for the Private Sector Shows That

question 103

Multiple Choice

The circular flow model for the private sector shows that

• A) business firms are the revenue source for consumers.
• B) financial intermediaries use the deposits from households to make loans to businesses.
• C) factors of production are demanded only by the government.
• D) net exports are always equal to zero.
• E) the goods and services produced by business firms are sold through resource markets.

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