if-a-household-purchases-a-car-from-a-firm-what-is-the-flow-of-money-and-goods-i

Question

If a household purchases a car from a firm, what is the flow of money and goods in the circular flow diagram?

Accepted Answer

Money flows from the household to the firm; goods flow from the firm to the household.

Answer

Money and goods both flow from the household to the firm.

Answer

Money and goods both flow from the firm to the household.

Answer

Money flows from the firm to the household; goods flow from the household to the firm.