The biggest money cycle in the circular flow model is __ between savings and investment. between products and resources. between exports and imports. between government taxation and government spending (5 Points)

Question

The biggest money cycle in the circular flow model is __ between savings and investment. between products and resources. between exports and imports. between government taxation and government spending (5 Points)

Answer 1

## Step 1The circular flow model is a simplified representation of the economy that shows the flow of money and goods between different sectors. The model consists of two main components: the product market and the resource market.## Step 2The product market is where goods and services are sold, and the resource market is where resources (like labor) are bought and sold.## Step 3The biggest money cycle in the circular flow model is between products and resources. This is because the money flows from the resource market to the product market when resources are sold, and then back to the resource market when goods and services are sold.

Problemas

The biggest money cycle in the circular flow model is __ between savings and investment. between products and resources. between exports and imports. between government taxation and government spending (5 Points)

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