Which of the following is true in the case of the simple circular flow model with no savings?
A) Total spending is greater than total income.
B) Total spending equals total income only at full employment.
C) Total spending equals total income.
D) Total spending is less than total income.

Question

Quizplus · Accepted Answer

In a simple circular flow model with no savings, all income received by households is spent on goods and services, so total spending equals total income.

Which of the Following Is True in the Case of the Simple