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Figure: Expanded Circular-Flow Model
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. The total flow of funds into and out of households is:
A)$1,020.
B)$1,000.
C)$850.
D)$700.

Question

Use the following to answer questions:
Figure: Expanded Circular-Flow Model 
-(Figure: Expanded Circular-Flow Model) Look at the figure Expanded Circular-Flow Model. The total flow of funds into and out of households is:
A)$1,020. 
B)$1,000. 
C)$850. 
D)$700.

Quizplus · Accepted Answer

The total flow of funds into and out of households is $1,020. This is because households receive $1,000 in income from firms and pay $20 in taxes to the government.

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