The circular flow diagram illustrates _____.
A)the growth of income inequality in the United States
B)the growth of income inequality in the United States.
C)the production of nondurable goods.
D)the production of nondurable goods
E)spending on goods and services.
F)spending on goods and services
G)the production of durable goods
H)the production of durable goods.

Question

Quizplus · Accepted Answer

The circular flow diagram illustrates the flow of money and goods/services between households and businesses, representing spending on goods and services. It does not specifically relate to income inequality or production of durable or nondurable goods.

The Circular Flow Diagram Illustrates _____