Because one person's spending is another person's income,if one group in the economy spends more,the incomes of other groups will increase.

Question

Quizplus · Accepted Answer

This statement is a basic principle of macroeconomics known as the "circular flow of income." When one group spends more, that money becomes income for the businesses and individuals who receive it, allowing them to spend more as well. This creates a positive multiplier effect on the overall economy.

Because One Person's Spending Is Another Person's Income,if One Group