The multiplier and circular flow
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Last updated 7:05 PM on 10/12/25
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5 Terms
1
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Real flows
Factor services flow from households to the government (factor market).
Public goods and services flow directly from the government to households.
2
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Money flows
Income flows to households when the government spends on factor services (factor market).
Income flows directly to the government when households pay their taxes.
3
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Financial institutions examples
insurance companies
The Johannesburg Stock Exchange
South African Reserve Bank
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Financial institutions role
act as intermediaries in financial markets by linking borrowers and savers.
5
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Market equilibruim equation
I + G + X = S + T + M
Note 
Flashcards (36)