According to the circular flow of income and output, which of the following is not true?
A. Total income and total output must be equal.
B. Goods and services flow in one direction and money payments flow in the other direction.
C. In every economic? transaction, the seller receives exactly the same amount that the buyer spends.
D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
Ans: D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
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What will be an ideal response?
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Rosa deposits $100 in a bank account that pays an annual interest rate of 20 percent. A year later, after Rosa has accumulated $20 in interest, she withdraws her $120 . Rosa's purchasing power
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