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Questions
Draw a diagram to show the real flow and money flow of income in a two-sector model of circular flow of income.
With the help of a diagram, show the circular flow of income in a two-sector model with savings (leakages) and investment (injection).
Diagram
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Solution
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Notes
Students should refer to the answer according to the question.
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Chapter 31: National Income and Circular Flow of Income - TEST QUESTIONS [Page 31.15]
