Circular Flow Model Quiz

To analyze the impact of government policies

To monitor international trade

To track the inflation rate

To illustrate the flow of money, goods, and services (correct)

Due to its focus on measuring sectoral profitability

For its emphasis on government expenditure patterns

As it highlights the movement of money in the economy (correct)

Because it tracks consumer saving habits

Movement of money between sectors (correct)

Exchange rates between countries

Consumer spending patterns

Flows of goods and services