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What role does investment play in the circular flow model of the economy, and how is it defined within this framework?
Investment in the circular flow model of the economy refers to the spending on capital goods like machinery and equipment by businesses. This type of investment is essential for economic growth as it leads to increased production and job creation. In the model, investment is a key component of the flow of money and resources between households and businesses, driving the cycle of production and consumption.
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The circular flow model of a mixed economy shows .?
what does a circular model of a mixed economy show
How does the circular flow model of a mixed economy compare with that of a market economy?
Government is added into the circular flow model of a mixed economy.
What are participants in the economy with one action that contributes to the circular flow of the free-market system?
A. Consumers -Providing investment capitalB. Producers -Paying wages C. Governments -Collecting taxes
How does credit make the economy grow include circular flow?
The monetary flow in a given economy as a result of the access to the credit makes the economy grow which includes the circular flow.
Why can your economy be defined as a participatory economy?
because it is apart of participatory economy
