Which of the Following Is a Flow in the Circular

question 238

Multiple Choice

Which of the following is a flow in the circular flow model?

• A)the flow of goods and services from households to firms
• B)the flow of profit and the flow of revenue
• C)the flow of income earned by firms and the flow of expenditures earned by households
• D)the flow of revenue received by firms and the flow of payments to resource owners

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Definitions:

Spot Rate

The current market price at which a particular asset, such as currency, commodity, or security, can be bought or sold for immediate settlement.

Exchange Rates

The price of one country's currency in terms of another currency, influencing international trade and investment.

Pesos

The currency used in various Latin American countries and the Philippines, symbolized by "$" or "₱" depending on the country.

Bolivars

The currency of Venezuela, used in financial transactions within the country.