All of the following are examples of spending on goods and services in the circular flow model except
A)Amanda purchases a new electric guitar to pursue her hobby seriously.
B)Chaitanya buys a new spa pedicure chair for her expanding nail salon business.
C)Hernan buys a pizza at Papa C's.
D)Lenny buys a new digital camera to take pictures at his son's graduation.

Question

Quizplus · Accepted Answer

In the circular flow model, spending on goods and services typically refers to consumer spending for personal use, not business investments or purchases. Chaitanya buying a new spa pedicure chair for her nail salon business is considered an investment in capital goods, not a purchase of goods and services for personal consumption.

All of the Following Are Examples of Spending on Goods