Which one of the following statements is true? Money flows from:

Question

Quizplus · Accepted Answer

The statement "Money flows from the government to firms for goods and services" is true. The government spends money on goods and services needed to carry out its functions and this spending goes to the firms that provide those goods and services. Money also flows from households to firms for consumption, and from firms to households for wages and profits. Option A is incorrect because taxes are paid by households and businesses to the government. Option B is incorrect because households receive money from exports, not the other way around. Option D is incorrect because firms pay for exports to foreign economies, not the other way around.

Which One of the Following Statements Is True? Money Flows