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Hi, please help with the below two questions, and give the interpretation of why you believe this option is true. Thank you.

Question 9 2 pts Which of the following is FALSE regarding the Circular Flow Model? It explains how firms are formed It is co

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Answer #1

9. It explains how firms are formed.

The circular flow model tells about how the individuals provide the resources necessary for the businesses to produce goods and services and does not tell about how firms are formed.

10. It looks more like a circle

It looks like a circle with government at the center and households and firms on the sides.

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