The circular flow model demonstrates how money moves endlessly from producers to households, then back from households to producers. It factors into a country’s gross domestic product (GDP).

One fraud scheme that has been encountered with increasing frequency involves the inflation of accounts receivable and sales through the creation of a circular flow of cash through a company to give ...

Learn about our editorial policies Money flow and real flow are the two main aspects of the circular flow of income economic model. Both refer to exchanges of goods and services for money ...