The arrow that represents the flow of spending by Households is Arrow labelled A.
What arrow shows consumer spending?
In the circular flow model, the place where households spend is in the Market for goods and services where they are able to get access to the goods and services that are produced by companies.
This market for goods and services is shown with arrow A. The circular flow model shows how businesses and households interact in the market with the businesses seeking factors of production from the households.
One factor of production that businesses get from households is labor. They employ people to work for them in production. Another factor is capital which they get from the savings of the households in banks and other financial institutions.
In conclusion, the arrow that shows the flow of the spending by households is Arrow A.
Find out more on the circular flow model at https://brainly.com/question/1433471
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