In a typical circular flow model describing the interaction of businesses and households, which of the following is/are true? I. Households buy factors of production and goods II. Firms buy factors of production and goods III. Households buy factors of production IV. Firms buy factors of production V. Firms buy goods VI. Households buy goods

A.
I only
B.
II only
C.
III and IV only
D.
IV and VI only
Macroeconomics
AP
College Board
Exam No:AP Macroeconomics Problem Set 5 Year:2024 Question No:APMacroeconomics2024AP0087

Answer:

D

Knowledge points:

2.1 The Circular Flow and GDP

Solution:

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