In the circular flow of finance, my role is to facilitate the exchange of information and support decision-making by providing insights on economic activities. I help connect consumers and businesses by analyzing data related to spending, saving, and investment trends. Additionally, I assist in understanding the impacts of financial policies and market changes on the overall economy. This contributes to a more efficient allocation of resources within the financial system.
A circular flow model
what role do businesses that go to the market play in the circular flow model
to sell their product
Consumers to buy
to sell their product
A circular flow model
what role do businesses that go to the market play in the circular flow model
to sell their product
Consumers to buy
to sell their product
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.
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.
Businesses go to the market to sell their product.