The Circular Flow Model Shows the Flow of

question 93

Multiple Choice

The circular flow model shows the flow of

• A) expenditure and income throughout the economy.
• B) only money throughout the economy.
• C) only funds in stock and bond markets.
• D) only tax payments and government expenditures.
• E) goods market and factor markets as they move through the economy.

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Definitions:

Notes Receivable

Claims against debtors that are supported by formal agreements or promissory notes, specifying the amounts owed and payment terms.

Discount On Notes Receivable

An amount deducted from the face value of a note to reflect the interest revenue over the term of the note.

Notes Receivable

Short-term or long-term financial assets representing amounts owed to the company that are documented through formal agreements or promissory notes.

Interest Revenue

This refers to the income that is earned from investments, loans, or savings accounts, essentially any source that pays interest.