 |
Definition of 'Circular Flow Of Income'
The circular flow of income is a neoclassical economic model depicting how money flows through the economy. In the most simple version, the economy is modeled as consisting only of households and firms. Money flows to workers in the form of wages, and money flows back to firms in exchange for products. This simplistic model suggests the old economic adage, "Supply creates its own demand."
|
 |
Investopedia explains 'Circular Flow Of Income'
The circular flow of income model illustrates the interdependencies of different factors in the economy. However, actual money flows through the economy are far more complicated. Economists have expanded on the ideas of the circular flow of income model to better depict the complexity of modern economies.
|
Search results for 'Circular Flow Of Income'
-
http://www.investopedia.com/exam-guide/series-7/customer-accounts/required-disclosures.asp
... who must satisfy net worth and income requirements ... well as a discussion of the
flow-through of ... to accredited investors through an offering circular, hedge fund ...
-
http://www.investopedia.com/articles/bonds/08/reverse-convertible-note.asp
... bonds can put a big dent in your cash flow. ... than can be found on traditional
fixed-income investments and ... be sure to read the offering circular and prospectus ...
-
http://www.investopedia.com/university/small-business/understanding-small-business-taxes.asp
... You'll have to withhold federal and state income taxes and FICA ... of this tutorial;
see IRS Publication 15 (Circular E), Employer's ... Discounted Cash Flow Analysis. ...
|
|
