ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income
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wealth
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Either A or B
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None of the above
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Detailed explanation-1: -What is Circular Flow of Income? The circular flow means the unending flow of production of goods and services, income, and expenditure in an economy. It shows the redistribution of income in a circular manner between the production unit and households.
Detailed explanation-2: -Money Flow is the typical price multiplied by Volume. Typical Price = (High + Low + Close) / 3. Money Flow = Volume x Typical Price.
Detailed explanation-3: -The spending by households on goods and services is funded by the income that households earn. But this income comes from firms, and they get their income from the spending of households. Thus there is a circular flow of income in an economy as a whole.
Detailed explanation-4: -Money flow is also known as Nominal Flow.