The circular flow of income shows that total spending is _____ total income.
A)greater than
B)equal to
C)less than
D)unrelated to

Question

Quizplus · Accepted Answer

In the circular flow of income, total spending by households equals total income earned by firms, and total spending by firms equals total income earned by households. Therefore, total spending and total income are equal, making choice B the correct answer.

The Circular Flow of Income Shows That Total Spending Is