The Circular Flow Model Illustrates the Crucially Important Idea of Macroeconomics

Multiple Choice

The circular flow model illustrates the crucially important idea of macroeconomics, which is that:

A) every expenditure of someone in the economy is exactly equal to the income of another.
B) only two markets exist in every economy-input and output.
C) income is lower when there is more spending on goods and services.
D) the flow of two things in the economy-"stuff" and "money"-travel in the same direction.