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In the Circular Flow Model, the Flow of Dollars from Firms

Question 59

Multiple Choice

In the circular flow model, the flow of dollars from firms to households is paid _____ and the flow of dollars from households to firms is paid _____.


A) as wages and profits; for goods and services
B) for value added; as imputed values
C) in current dollars; in constant dollars
D) as interest and dividends; for depreciation and taxes

Correct Answer:

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