The circular flow model illustrates
A)the importance of having a central plan for the economy.
B)how capital and other resources are created.
C)how money is created by the banking system.
D)the interdependence of businesses and consumers.

Question

Quizplus · Accepted Answer

The circular flow model illustrates the interdependence of businesses and consumers, showing how money, goods, and services move through the economy. It highlights the continuous flow of money between households and firms, emphasizing their mutual reliance.

The Circular Flow Model Illustrates