Answer to Question #74681 in Macroeconomics for Thulie

Question

3. In a circular flow of income and spending
a. the flow of income is in the same direction as the flow of spending.
b. the firms' spending represents the expenditure of the households.
c. the firms supply goods in the factor market and households buy these goods in the
goods market.

[1] None of the above statements
[2] a
[3] b
[4] c
[5] All the statements are correct