Refer to the Above Figure

question 51

Multiple Choice

Refer to the above figure. If box A represents households, B the product market, and C businesses, then flow (2) and flow (4) would represent:

• A) Resources
• B) Goods and services
• C) Revenues
• D) Money incomes

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Definitions:

Dividends Paid

Payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings.

Net New Borrowing

The total amount of new debt a company has taken on minus any debt that has been repaid during a specific period.

Interest Payments

Payments made to a lender by a borrower in return for the use of borrowed money, typically calculated as a percentage of the principal.

Net New Equity

The difference between equity capital a company raises by issuing new shares and the capital it uses to buy back existing shares.