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Question

Flow of Goods and services and factors of production across different sectors in a barter economy is known is ______________.

A
Circular Flow
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B
Real Flow
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C
Monetary Flow
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D
Capital Flow
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Solution

The correct option is D Real Flow
Flow of Goods and services and factors of production across different sectors in a barter economy is known as real flow since there are only exchange of goods and services in the barter economy. Real flow refers to the flow of goods and services across different sectors of the economy.

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