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Absolutely a leakage from circular flow model

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Reference no: EM131204002

1. Does the product of grain exhibit constant or increasing cost technology? Why?

2. Which of the following is right about the saving in circular flow model?

(A) Saving is absolutely a leakage from circular flow model

(B) Saving is never a leakage because if flow into goods and services market

(C) Saving can go back to circular flow model through financial sector

(D) Saving can go back to circular flow model through markets for factors of production

Reference no: EM131204002

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