In the circular flow diagram, aggregate expenditure includes the sum of
A) saving and investment.
B) consumption and investment.
C) consumption, investment, and saving.
D) income and saving.
Question 2
In the circular flow model of an economy, households
A) receive income from buyers of goods and services.
B) receive income from the sale of factors in the goods markets.
C) pay firms for the use of their factors.
D) receive income from producers for the use of factors in the factor markets.
