Which of the following does NOT take place in a circular flow of income and expenditure model? ОА. Consumers and firms deposit funds and earn interest on savings in the financial sector. ов. Firms and consumers take loans to invest in capital goods and assets and have to pay interest on loans. OC. 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? ОА. Consumers and firms deposit funds and earn interest on savings in the financial sector. ов. Firms and consumers take loans to invest in capital goods and assets and have to pay interest on loans. OC. Firms sell factors of production in the factor market D. Importing countries pay using foreign exchange for imported goods and services.
Chapter19: Measuring Economic Performance
Section: Chapter Questions
Problem 6P
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Question
![Which of the following does NOT take place in a circular flow of income and expenditure model?
OA.
Consumers and firms deposit funds and earn interest on savings in the financial sector.
В.
Firms and consumers take loans to invest in capital goods and assets and have to pay interest on loans.
OC.
Firms sell factors of production in the factor market
OD.
Importing countries pay using foreign exchange for imported goods and services.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6ecf5f0-c73f-4a8b-b557-3490ff0c2a23%2F32d38ef6-498b-452e-9440-b95e5d045a55%2F68v5fn8_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following does NOT take place in a circular flow of income and expenditure model?
OA.
Consumers and firms deposit funds and earn interest on savings in the financial sector.
В.
Firms and consumers take loans to invest in capital goods and assets and have to pay interest on loans.
OC.
Firms sell factors of production in the factor market
OD.
Importing countries pay using foreign exchange for imported goods and services.
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