All of the following are examples of spending on goods and services in the circular flow model except
A)Giovani buys a new cell phone to replace the one he flushed down the toilet.
B)Amir buys a new humidor for his cigar shop.
C)Isabella buys the sushi plate for lunch at the Turning Japanese Sushi Bar.
D)Vijay buys a new minivan for his family's cross-country vacation.

Question

Quizplus · Accepted Answer

In the circular flow model, spending on goods and services typically refers to consumer spending. Amir buying a new humidor for his cigar shop is considered an investment in business capital, not consumer spending.

All of the Following Are Examples of Spending on Goods