The circular flow of income is coordinated by the
A)goods and services market,resources market,foreign exchange market,and loanable funds market.
B)consumption market,investment market,stock market,and government market.
C)government market,household goods market,bond market,and business market.
D)financial market,corporate market,stock market,and loanable funds market.

Question

Quizplus · Accepted Answer

The circular flow of income involves the flow of money and goods between households and firms. This flow is coordinated by four markets - goods and services market, resources market, foreign exchange market, and loanable funds market. In the goods and services market, households purchase goods and services produced by firms, while firms sell their goods and services to households. In the resources market, households supply resources such as labor and capital to firms in exchange for payment. The foreign exchange market facilitates the trade of goods and services between different countries, while the loanable funds market coordinates the borrowing and lending of funds between households and firms. Therefore, option A is the correct choice.

The Circular Flow of Income Is Coordinated by the