If the summary of economic activity is such that total production is $100, total spending is $100 and total income is $100 and all of this financed with a $20 bill, what is the amount of the flow in this example?Multiple choice question.$100$20$80$120
Question
If the summary of economic activity is such that total production is 100 and total income is 20 bill, what is the amount of the flow in this example?Multiple choice question.20120
Solution
The amount of the flow in this example is 100. The fact that all of this is financed with a 20 bill is being used multiple times.
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