Economy, asked by gulchandak8196, 7 months ago

Money flows are apposite to real flow. How?

Answers

Answered by kush193874
4

Answer:

Because money flow are in response to the real flows. 

Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services (wages, for example) or consumption payments.

Answered by emambaig786
3

Money flows are opposite to real flows. Because money flow are in response to the real flows. Example-There is a real flow of goods and services from the producers to the households. It is in response to it, that the households makes payments to the producers. So, that money flows from the households to producers in terms of consumption expenditure. Likewise, there is a real flow, of factor services from the households to the producers. It is in response to it, that the producers make payments to the households. So that, money flows from producers to the households in terms of factor payments.

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