Figure 6-2 Shows a Spending Flow Model Where Both Consumption

Multiple Choice

Figure 6-2 shows a spending flow model where both consumption and investment goods are being produced. Use the figure to answer questions .
Figure 6-2
-Refer to Figure 6-2. The purchase of a new tractor by Farmer Brown is:

A) classified as gross private investment and the flow is represented by 5.
B) classified as gross private investment and the flow is represented by 2.
C) classified as consumption and the flow is represented by 5.
D) classified as consumption and the flow is represented by 1.