Answer to Question #130718 in Economics of Enterprise for OBVIOUS

Question

The three major flows in any economy are …
[1] income, spending and saving.
[2] income, government spending and consumption.
[3] spending, production and investment.
[4] production, income and spending.

Answer 1

The simplified economic circuit presented above shows the streams of income and expenditure. However, it is also necessary to take into account savings of a financial nature and savings of consumer goods in various forms.