Page 72 - Macroeconomics. book docx_Neat
P. 72
The foreign sector is included in the circular flow through exports and imports. (True)
The circular flow model shows the economy as a closed and disconnected system.
(False)
Spending by households becomes income for firms in the circular flow. (True)
The circular flow helps simplify the understanding of macroeconomic activities. (True)
Saving and investment have no effect on the circular flow of income. (False).
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