Question

According to the circular flow of income and​ output, which of the following is not​ true? A. Goods and services flow in one direction and money payments flow in the other direction. B. ​Goods, services and money all flow in one direction since money pays for the goods and services. C. Total income and total output must be equal. D. In every economic​ transaction, the seller receives exactly the same amount that the buyer spends.

Answer 1

Answer:

The answer is: B. ​Goods, services and money all flow in one direction since money pays for the goods and services.

Explanation:

​The circular flow of income and output economic model tries to explain how money flows through the economy. It uses households and businesses to explain how money changes from one to the other. For example, Business's money flows to households as workers' wages and then it returns when households buy products and services.