After Studying the Circular Flow of Dollars in the Economy

question 133

Essay

After studying the circular flow of dollars in the economy, explain with an example how saving done by households goes back into the circular flow. In reality, does all saving go back as an investment?

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Definitions:

Thought Suppression

The conscious effort to avoid thinking about specific thoughts, particularly those that are undesirable or disturbing.

White Bear

A phenomenon where the more you try to avoid thinking about something, the more that thought enters your mind.

Leo Tolstoy

A renowned Russian author, known for his novels "War and Peace" and "Anna Karenina," and his philosophical essays on nonviolent resistance.

Prime

In a mathematical context, a prime number is a natural number greater than 1 that has no positive divisors other than 1 and itself.