According to the circular flow model, money flows from households to businesses in:

Question

Quizplus · Accepted Answer

In the circular flow model, households provide factors of production to businesses and in return receive wages, rent, dividends, and profits. They then use this income to buy goods and services from businesses in the output markets. Thus, money flows from households to businesses in output markets when households purchase goods and services.

According to the Circular Flow Model, Money Flows from Households