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Basic Concepts & the Circular Flow · Question 63 of 72

Question 63

MediumOriginal question

In a two-sector economy with a financial market, household saving reaches firms as

Options for question 63

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Households deposit savings in the financial market.

  2. Firms borrow from it to invest, so the leakage returns as an injection.

Concept
The financial market
Typical time
70 s
Your time
—
The rule this testsThe circular flow of income
Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.