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Open economy circular flow model
29
Transcript
Financial Market
Bank /
Stock Exchanges / etc.
Investment
(I)
Saving
(S)
Factor market
Government Borrowing
Wages / Rent / Interest / Profit
Aggregate Income (Y)
Factors of production:
Labour / Land / Capital / Entrepreneurship
Exports (X)
Government
Direct Tax
Households
Business
Benefits (B)
Payment for X
Government Spending (G)
Subsidies (Su)
Imports (M)
Indirect Tax
Tax
Payment for M
Comsumption Expenditure (C)
Payment for M
Goods and services
Goods market
Imports (M)
Foreign
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