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Question
On the basis of the figure given below, identify the type of flow indicated by B and D:
Options
Real flow
Money flow
Nominal flow
National flow
Solution
Real flow
Explanation:
Real Flow is denoted by B and D. Real flow refers to the movement of commodities and services from one sector to another. B denotes the flow of goods and services from enterprises to households. D denotes the flow of factor services, such as land, labor, capital, and entrepreneurial skills, from the household sector to companies.
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