Match the following:
| 1. | Sheena who lives in Mandana's house and pays rent | A. | Real flow |
| 2. | Fridge purchased by Priyanshu | B. | Contraction |
| 3. | Injection | C. | Money flow |
| 4. | Leakage | D. | Expansion |
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: 1-C, 2-A, 3-D, 4-B
| 1. | Sheena who lives in Mandana's house and pays rent | C.Money flow | |
| 2. | Fridge purchased by Priyanshu | A.Real flow | |
| 3. | Injection | D.Expansion | |
| 4. | Leakage | B.Contraction | |
- Real flow: It is the flow of goods and services across different sectors of the economy. Fridge purchased by Priyanshu is an example of real flow
- Money flow: It involves the flow pf factor payments and payments of goods and services. Sheena who lives in Mandana's house and pays rent is an example of money flow.
- Expansion of circular flow implied "Injection" into it.
- Contraction implies "leakages" from the circular flow.