how-does-a-households-decision-to-save-money-instead-of-spending-it-affect-the-c

Question

How does a household's decision to save money instead of spending it affect the circular flow model?

Accepted Answer

It decreases the flow of money in the market for goods and services.

Answer

It has no impact on the circular flow.

Answer

It increases the flow of money to firms.

Answer

It increases the flow of resources to firms.