Without foreign trade,the dollars used to buy goods and services are included in the circular flow as consumption,investment,and government spending.
As income is used to buy goods and services,the money spent is counted as consumption,investment,and government spending in the circular flow.

Question

Quizplus · Accepted Answer

Without foreign trade, the dollars used for buying goods and services are considered consumption, investment, or government spending in the circular flow. As income is used to purchase goods and services, the money spent falls into these categories as well.

Without Foreign Trade,the Dollars Used to Buy Goods and Services