Question

7) Circular flow of income is based on
the fact that: *
a) All sectors are self sufficient and
independent
O
b) income generated in one sector is
consumed by itself
O
c) one person's expenditure is
another person's income
O O
d) all economies are closed
economies​

Answer 1

Answer:

The circular flow of income or circular flow is a model of the economy in which the major exchanges are represented as flows of money, goods and services, etc. between economic agents. The flows of money and goods exchanged in a closed circuit correspond in value, but run in the opposite direction. The circular flow analysis is the basis of national accounts and hence of macroeconomics.

Answer 2

Answer:

c

Explanation:

is the answer

thanks for the points