Consider an economy where there is non-existence of money meaning money is not used for carrying on trade. What will be the flow in such an economy called as? |
Capital flow Nominal flow Physical flow Circular flow |
Physical flow |
The correct answer is option 3: Physical flow Explanation: In an economy where money is not used for trade, the transactions are based on the exchange of goods and services, which is referred to as physical flow. This is because the flow of goods and services takes place without the use of money, implying a barter system where physical goods and services are exchanged directly. |