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A circular flow model
what role do businesses that go to the market play in the circular flow model
to sell their product
to sell their product
Consumers to buy
A circular flow model
what role do businesses that go to the market play in the circular flow model
to sell their product
to sell their product
Consumers to buy
You have leakages from your circular flow.
The people who go to the market are consumers.
Savings from the economic theory are considered as a leakage in the circular flow of currency thereby play an important role.When individuals save, those savings are used for lending those with deficit units to have their investments especially investment companies.
Businesses go to the market to sell their product.
since there will be leakages from the circular flow
since there will be leakages from the circular flow
Circular flow means the pattern in which goods,services,and resources flow in the marketplace.