In a simple circular-flow diagram,
A)households spend all of their income.
B)all goods and services are bought by households.
C)expenditures flow through the markets for goods and services,while income flows through the markets for the factors of production.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In a simple circular-flow diagram, households spend all their income on goods and services, all goods and services are bought by households, and expenditures flow through the markets for goods and services while income flows through the markets for the factors of production.

In a Simple Circular-Flow Diagram