Real flow refers to the flow of factor services from to __.

Firms to households

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Households to firms

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Firms to government

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Households to government

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Solution

The correct option is B Households to firms
Real flow refers to the flow of factor services from households to firms. Real flow is also known as physical flow. Flow of factor services from household sector to the producer sector or flow of goods and services from producer sector to household sector are examples of real flows.

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Real flow refers to the flow of factor services from ______ to ________.

Real flow refers to the flow of factor services from to __.