A circular flow model is shown. Line A is drawn from Household to firms. Line B is drawn from firms to households. Line C is drawn outside from firms to households. Line D is drawn outside from households to firms.
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In the circular flow model, households provideto firms. This is represented by the letter A.
In return, within the circular flow model, firms provide households with. This is represented by the letter B.
Firms then provideto households. This is represented by the letter C.
Finally, households provide theirto firms. This is represented by the letter D.
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