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In the circular flow model, households earn their incomes in the:
7% Bond
A bond that pays 7% interest annually on its face value.
Current Yield
A financial ratio that shows the annual dividend rate of a security divided by its current market price.
9% Bond
A bond that pays an annual interest rate of 9% to its holder.
Current Yield
The annual income (interest or dividends) divided by the current price of the security, often used to measure the return on investment for bonds.
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