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The Circular Flow Model Shows That

Question 50

Multiple Choice

The circular flow model shows that


A) households receive income from businesses in exchange for providing inputs and use the income to buy goods and services from businesses.
B) businesses receive rent from households in exchange for providing goods and services and use the income to buy inputs from households
C) households receive revenue for selling goods and services to businesses and use the revenue to buy inputs from businesses.
D) businesses receive revenue for providing inputs to households and use the revenue to buy goods and services.
E) businesses receive wages and interest, which they use to invest for the growth of an economy as a whole.

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