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Natalka [10]
3 years ago
15

The following model shows how resources in an economy move between households, businesses, and government. The Circular Flow Mod

el Production Possibilities Model (or PPF) Supply and Demand Model Perfect Competition Model Monopoly Firm Model
Business
1 answer:
Alex3 years ago
6 0

Answer:

The correct answer is the circular flow model.

Explanation:

The circular flow model shows the movement of resources between different sectors in the economy. The firms or business hire factors of production from the households. In return, they make factor payments. They use these factors to produce goods and services. The households purchase these goods and services and pay by their factor incomes.  

The government sector charges taxes from households and businesses and provides goods and services in return. The government also hires factors of production and make factor payments. It also purchases goods and services from the businesses and pays for it.

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The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.

<h3>What happens when reserve requirements are increased?</h3>

Banks are known to often hold a lot of reserves if reserve requirements are increased.

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