alleryStart learning →Money and goods in the circular flow move in:
AThe same direction
BOpposite directions
COnly toward households
DOnly toward firms
Answer & Solution
Correct answer: B. Opposite directions
Every money payment is matched by a flow of goods or services in the other direction, and the values correspond.
Keep practising Determination of National Income
Browse all Determination of National Income questions for CA Foundation, or explore more Business Economics topics.
Related questions
Which theory of consumption did Modigliani and Brumberg propose in 1954?Which consumption theory is Milton Friedman's (1957)?Who introduced the consumption function into macroeconomics in 1936?The consumption function describes the relationship between consumption and what?In which decade was the modern theory of the multiplier developed by Kahn, Keynes and otheA plot of a variable's response to a shock over time t, t+1, t+2 is called:In the open-economy multiplier formula, the symbol m stands for the propensity to:Paul Samuelson credited which economist for inspiring his 1939 multiplier-accelerator mode