The Circular Flow Model Is Used to Show the

question 1

Multiple Choice

The circular flow model is used to show the

• A) flow of renewable natural resources.
• B) recycling process of production materials.
• C) expansions and contractions of economic activity.
• D) flow of expenditures and incomes in the economy.
• E) flow of supply and the flow of demand.

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Definitions:

Annual Return

The percentage change in an investment's value over a year, including dividends and appreciation.

Investment

Assets purchased with the expectation that they will generate income in the future or appreciate in value.

Semiannually

Occurring twice a year, typically every six months.

Annual Return

This measures the financial gain or loss of an investment over a one-year period, expressed as a percentage of the investment's initial cost.