In the circular flow diagram everyone's expenditure is someone else's receipt.

Name: In the circular flow diagram everyone's expenditure is someone else's receipt.
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Question

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In the circular flow diagram, when one person spends money on goods or services, that money becomes income for someone else, who then spends it on their own needs, creating a continuous cycle of income and expenditure. Thus, everyone's expenditure becomes someone else's receipt.

In the Circular Flow Diagram Everyone's Expenditure Is Someone Else's