Which of the Following Correctly Describes the Exchanges Depicted in the Circular

Multiple Choice

Which of the following correctly describes the exchanges depicted in the circular flow model?

A) Households sell factors of production to the business sector and the business sector sells goods and services to households.
B) Households sell goods and services to the business sector and buy factors of production from the government.
C) Households buy factors of production from the business sector and sell goods and services to the government.
D) Households and businesses buy goods and services from the government