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    Principles of Macroeconomics
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    Exam 2: Thinking Like an Economist
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    What Does a Circular-Flow Diagram Do
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What Does a Circular-Flow Diagram Do

Question 21

Question 21

Multiple Choice

What does a circular-flow diagram do?


A) It illustrates cost-benefit analysis.
B) It explains how the economy is organized.
C) It shows the flow of trade in the world.
D) It explains how banks circulate money in the economy.

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