The Circular-Flow Diagram Is a

question 193

Multiple Choice

The circular-flow diagram is a

• A)visual model of the economy.
• B)visual model of the relationships among money,prices,and businesses.
• C)model that shows the effects of government on the economy.
• D)mathematical model of how the economy works.

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Definitions:

Yearly Payments

Payments that are made once a year, often related to loans, annuities, or insurance policies.

Annual Payments

Regular amounts paid once a year, often used in the context of loan repayments or investment returns.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.

Lease Payments

Regular payments made by a lessee to a lessor for the use of an asset.