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The Circular-Flow Model Shows That _____

Question 114

Multiple Choice

The circular-flow model shows that _____


A) households are on the demand side of the resource market.
B) firms are on the demand side of both the product and resource markets.
C) for each flow of money, there is an equal and opposite flow of products or resources.
D) firms and governments are on the supply side of the loanable funds market.
E) governments are on the demand side of the product market and the supply side of the resource market.

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