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What is the direction of real flow and money flow?

Answer and explanation

Correct answer: Both move in opposite directions

Real flow and money flow move in opposite directions in the circular-flow model. For example, goods and services move from firms to households, while the consumption payments for them move from households to firms. Similarly, factor services and factor payments move oppositely.

Related tags

National IncomeReal FlowMoney FlowOpposite DirectionsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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