Which of the following does NOT take place in a circular flow of income and expenditure model? A. Consumers and firms deposit funds and earn interest on savings in the financial sector. B. Firms and consumers take loans to invest in capital goods and assets and have to pay interest on loans. C. Firms sell factors of production in the factor market. D. Importing countries pay using foreign exchange for imported goods and services.

Which of the following does NOT take place in a circular flow of income and expenditure model? A. Consumers and firms deposit funds and earn interest on savings in the financial sector. B. Firms and consumers take loans to invest in capital goods and assets and have to pay interest on loans. C. Firms sell factors of production in the factor market. D. Importing countries pay using foreign exchange for imported goods and services.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 6P

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