The underlying principle of the circular flow diagram is that the flows of money into each sector or market in the economy are _____ those coming out of the sector or market.
A)greater than
B)greater than.
C)less than
D)less than.
E)equal to
F)equal to.
G)not enough information to solve this problem
H)not enough information to solve this problem.

Question

Quizplus · Accepted Answer

The circular flow diagram illustrates that the total amount of money flowing into each sector or market is equal to the total amount flowing out, maintaining a balance in the economy.

The Underlying Principle of the Circular Flow Diagram Is That