The Circular Flow Diagram Illustrates the Expenditures Made by

question 100

Multiple Choice

The circular flow diagram illustrates the expenditures made by

• A)households only.
• B)households and firms only.
• C)households and investors only.
• D)firms, households, and governments only.
• E)households, firms, governments, and the rest of the world.

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Definitions:

Note Payable

A financial obligation or loan documented by a written promissory note specifying the principal amount, interest rate, and terms of repayment.

Liquidated

Refers to the process of settling debts by selling off assets.

Liquidation

The procedure of concluding a company's operations and allocating its resources among those who have claims.