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Circular Money Flow Diagram

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Vickie
Published on 2021-06-29
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Here is an example of a circular flow diagram that shows the interrelation between government factors, households, and firms. The taxes and other government-owned factors get back to the government, and a part of it gets back to the businesses and households through the services and other expenditures of the government. The circular flow diagram also explains the relation between the product market and the factor market.
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