Which of the Following Best Characterizes the Circular Flow Model

Multiple Choice

Which of the following best characterizes the circular flow model?

A) Businesses receive revenue from households in exchange for providing inputs and use that revenue to buy goods and services from households.
B) Households receive income from governments in exchange for providing inputs and use that income to buy goods and services from businesses.
C) Households receive revenue for selling goods and services to businesses and use that revenue to buy inputs from businesses.
D) Businesses receive income from households in exchange for providing goods and services and use that income to buy inputs from households.