What role do funds (money) play in the circular flow model? a. They are what households or firms pay for products or resources. b. They are the means by which trade creates value. c. They enable firms and households to interact with foreign firms and households. d. They enable firms and households to pay their taxes

Respuesta :

Answer:

a. They are what households or firms pay for products or resources.

Explanation:

The circular flow model shows how money flows in the society, from producers to workers in the form of wages, and back to the producers as money paid for products thereby providing exchange between the household and the firm.

The household work for firms in exchange for money to pay for goods and services offered by the firm while the firm sell there goods to the household so as to be able to generate profits.

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