spending in the product market will be __________ to the income in the factor market. greater than less than…

spending in the product market will be __________ to the income in the factor market. greater than less than equal

spending in the product market will be __________ to the income in the factor market. greater than less than equal

Answer

Brief Explanations:

In a circular - flow model of the economy, the spending by households in the product market becomes the income for firms. Firms then use this revenue to pay for factors of production in the factor market, which becomes income for the owners of factors of production (such as labor, land, and capital). So, spending in the product market is equal to the income in the factor market.

Answer:

C. Equal