In this article we will discuss about the circular flow of money in an economy. Contents: Circular Flow of Money between Household and Business Sectors Circular Flow of Money with Saving and Investment Circular Flow of Money with Government Sector Circular Flow of Money with the Foreign Sector 1. Circular Flow of Money between Household […]
The Circular Flow of Money (With Diagram)
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The Circular Flow of Money in an Economy: 8 Advantages
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The following points highlight the eight main advantages of the circular flow of money in an economy. The advantages are: 1. Link between Producers and Consumers 2. Creates a Network of Markets 3. Inflationary and Deflationary Tendencies 4. Basis of the Multiplier 5. Importance of Monetary Policy 6. Importance of Fiscal Policy 7. Importance of […]