Use the following to answer questions .
Exhibit: The Circular Flow for the United States
-(Exhibit: The Circular Flow for the United States) Washington State purchases four airplanes from Boeing. This expenditure falls under the:
A) gross private investment category and the flow is represented by 2.
B) government purchases category and the flow is represented by 2.
C) gross private investment category and the flow is represented by 3.
D) government purchases category and the flow is represented by 3.

Question

Use the following to answer questions .
Exhibit: The Circular Flow for the United States 
-(Exhibit: The Circular Flow for the United States) Washington State purchases four airplanes from Boeing. This expenditure falls under the:
A) gross private investment category and the flow is represented by 2. 
B) government purchases category and the flow is represented by 2. 
C) gross private investment category and the flow is represented by 3. 
D) government purchases category and the flow is represented by 3.

Quizplus · Accepted Answer

The purchase of airplanes by Washington State is a government expenditure, and the flow is represented by 3 in the circular flow model, which typically represents government spending.

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