In the circular flow model, the sector responsible for making investments is the Business sector. So, the answer is D. Business sector.

Here's a step-by-step explanation:

1. The Household sector is responsible for providing factors of production (like labor, capital) and for the consumption of goods and services.

2. The Financial sector is responsible for the flow of financial resources from those with surplus funds to those with a deficit of funds.

3. The Government sector is responsible for public spending and taxation.

4. The Business sector is responsible for producing goods and services. They make investments in order to produce these goods and services. Therefore, they are the ones who make investments in the circular flow model.

Question

In the circular flow model, the sector responsible for making investments is the Business sector. So, the answer is D. Business sector.

Here's a step-by-step explanation:

1. The Household sector is responsible for providing factors of production (like labor, capital) and for the consumption of goods and services.

2. The Financial sector is responsible for the flow of financial resources from those with surplus funds to those with a deficit of funds.

3. The Government sector is responsible for public spending and taxation.

4. The Business sector is responsible for producing goods and services. They make investments in order to produce these goods and services. Therefore, they are the ones who make investments in the circular flow model.

Knowee AI · Accepted Answer

In the circular flow model, the sector responsible for making investments is the Business sector. So, the answer is D. Business sector.

Here's a step-by-step explanation:

1. The Household sector is responsible for providing factors of production (like labor, capital) and for the consumption of goods and services.

2. The Financial sector is responsible for the flow of financial resources from those with surplus funds to those with a deficit of funds.

3. The Government sector is responsible for public spending and taxation.

4. The Business sector is responsible for producing goods and services. They make investments in order to produce these goods and services. Therefore, they are the ones who make investments in the circular flow model.

Which of the following sectors is responsible for making investments in the circular flow model? A. Household sector B. Financial sector C. Government sector D. Business sector

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