Question

What is the relationship between households and businesses in the circular flow model?

(1 point)
Responses

Households provide goods to businesses.
Households provide goods to businesses.

Businesses provide services to the government.
Businesses provide services to the government.

Households spend money on goods and services from businesses.
Households spend money on goods and services from businesses.

Businesses collect taxes from households.
Businesses collect taxes from households.

Answer 1

In the circular flow model, the correct relationship is:

**Households spend money on goods and services from businesses.**