Circular flow - warmup

The ......... shows the interaction of economic participants.

The ....... are the owners of the factors of production.

Interest on capital is an example of ...... flow

The .... represents the portion of money we are willing to spend.

When the MPS is 45%, the value of the MPC will be ......

Explain what real flow is and give an example.

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What will be the impact on the economy if injections are more than leakages?

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Explain the role of the government in the circular flow.

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The circular flow has the following participants.

• Factor market

• Financial sector

• Firms

• Money flow

Examples of leakages include the following.

• savings

• investments

• mpc

• exports