money flows are appisite to real …
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Meghna Thapar 5 years ago
Money flows are opposite to real flows. Because money flow are in response to the real flows. Example-There is a real flow of goods and services from the producers to the households. It is in response to it that the households makes payments to the producers. So that money flows from the households to producers in terms of consumption expenditure. Likewise there is a real flow of factor services from the households to the producers. It is in response to it that the producers make payments to the households. So that money flows from producers to the households in terms of factor payments.
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