The circular flow model illustrates:
A) The importance of having a central plan for the economy
B) How natural and other resources are created
C) How money is created by the banking system
D) The interdependence of businesses and consumers

Question

Quizplus · Accepted Answer

The circular flow model illustrates the interdependence between businesses and consumers, showing how they interact through the exchange of goods, services, and money. It highlights the importance of the flow of goods and money in a market economy.

The Circular Flow Model Illustrates