In the Circular Flow Model, the Flow of Dollars from Firms

question 59

Multiple Choice

In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.

• A) as wages and profits; for goods and services
• B) for value added; as imputed values
• C) in current dollars; in constant dollars
• D) as interest and dividends; for depreciation and taxes