The figure above shows the circular flow model.
-In the figure above,which of the following represents a money flow?

Name: The figure above shows the circular flow model. -In the figure above,which of the following represents a money flow?
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Question

Quizplus · Accepted Answer

Interest represents a flow of money in the circular flow model, as it is a payment made for the use of money. The other options listed represent either flows of goods or flows of factors of production (capital and services).

The Figure Above Shows the Circular Flow Model