Intermediate goods are shown in the circular flow diagram as:
A) a payments flow from individuals to producers.
B) a circular payments flow that starts and ends with individuals because they never enter into the normal transactions between producers and consumers.
C) a payments flow between the financial sector and producers because producers essentially acquire intermediate goods by borrowing to pay for them.
D) a circular payments flow that starts and ends with producers.
Correct Answer:
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A)
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