The circular flow model shows the flow of:
A)money in the economy.
B)financial assets in the economy.
C)goods and services in the product market.
D)resources and money in the economy.
E)resources through the resource markets and their allocation in the product market.

Question

Quizplus · Accepted Answer

The circular flow model illustrates the flow of resources and money between households and firms in the economy, showing how resources are exchanged for money and how money is used to purchase goods and services.

The Circular Flow Model Shows the Flow Of