Use the following to answer questions:
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model The 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 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model The flow of funds into and out of households is:
A) $1,020. 
B) $1,000. 
C) $850. 
D) $700.

Quizplus · Accepted Answer

The flow of funds into households is $1,000 (wages, rent, interest, and profits) and the flow of funds out of households is $20 (taxes). Therefore, the net flow of funds into households is $1,000 - $20 = $980.

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