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Economics - Financial Markets 21 Online
OpenStudy (anonymous):

Hi, I have a question on a quiz, and no matter how many times i review my book, I cannot find the answer to this circular flow problem.

OpenStudy (anonymous):

According to the circular flow model, if the total spending on goods produced by the business sector increases , a. income to households will increase b. costs of production will decrease and profits to businesses will increase c. investment will increase

OpenStudy (anonymous):

hello?

OpenStudy (anonymous):

C iguess...because of the multiplier effect...

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