Difference Between Real Flow And Money Flow In Points

  1. Difference Between Real Flow And Money Flow In Points Value
  2. Difference Between Real Flow And Money Flow In Points Calculator

Difference Between Real Flow and Money Flow (with Examples

Therefore, real flow is in the form of: The household sector provides factors of production to the producer sector. The actual flow of final goods and services from producers (firms) to consumers (households) Real flow is also known as physical flow and money flow is also known as nominal flow. 3 Thank You. ANSWER. Related Questions: discuss the various steps of expenditure method for calculateing national income. Report ; Posted by Kapil Bhavsar 4 days, 11 hours ago. CBSE > Class 12 > Economics 0 answers; Describe the briefly the feature of the economy tgat india inherited from her colonial past. This is the real flow of goods and services from firms to households, and it is indicated by the green dotted line in the red circle in the following diagram. An example of this flow would be the actual groceries you buy from, say, your local supermarket 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, but the two concepts differ in how they.

Product flow is also known as_____ A. Real Flow. B. Output Flow. C. Profit Flow. D. Both A & 2. Money flow is also known as physical flow. Ans: False: Real flow is known as physical flow. Money flow is known by the name of nominal flow. 3. In a two-sector economy, total production is always equal to total consumption. Ans: True: It happens because firms sell their entire output to the households. 4. Circular flow of income takes place in case of open economy and close economy 55. Income flow is also known as-----. a. Product Flow b. Money flow c. Profit flow d. Cash flow 56. Flows of the factor of production and the goods and services between the different sectors is -----. a. Real flow b. Money flow c. Cash flow d. Product flow 57. It is also called output flow or real flow a. Profit flow b

But, with a better understanding of how money works, you might just be able to make it work for you. This course explains the economic principle of the “flow of money,” which is represented in a circular model of income and spending.

1. Real flow (G) The flow of goods and sen/ices: 2. Money flow (J) The flow of money across different sectors: 3. Examples of injections (B) Exports, investments, etc. 4. Examples of leakages (A) Imports, savings, etc. 5. Examples of stock (C) Balance in the bank account as of January 1st, 2019: 6. Examples of flow (D) Income per Month: 7. GDPM ν = Kinematic viscosity of the fluid. If the Reynold Number is less than 2000, the flow is called Laminar flow. Reynold Number is more than 4000, the flow is called Turbulent flow. If the Reynold Number is lies between 2000-4000, the flow may be laminar or turbulent. 4

Difference between real flow and money Homework Help

  1. (i) Real flow: The flow of factor services from households to business and flow of goods and services from business to households is known as real flow. (ii) Money flow The flow of money across different sectors of the economy is temed as money flow. i.e. exchange of factor services by the household for factor payments from firms
  2. Real flow is the exchange of goods and services between household and firms whereas money flow is the monetary exchange between two sectors. In real flow household sector supplies raw material, land, labour, capital and enterprise to firms and in return firms sector provides finished goods and services to household sector. Whereas in money flow, firm sector gives remuneration in the form of money to household sector a wages and salaries, rent, interest etc
  3. al flow'. Difference between Real Flow and Money Flow
  4. Also the program is known as realflow Mac. From the developer: RealFlow is a stand-alone application for fluid and object dynamics. It is capable of simulating large-scale Hybrido fluids, highly detailed particles fluids, rigid and soft bodies, and wave surfaces. In addition to these technologies, RealFlow also provides a broad range of built-in tools to influence and control the dynamics of.

This video was up before, now updated with two passes of different foam type textures, since the RealFlow particle files to be used for sea spray effects stopped loading into Maya after ~1.5 million Equations (4.5) and (4.6) are known as the Cauchy-Riemann equations which appear in complex variable math (such as 18.075). Bernoulli Equation The Bernoulli equation is the most widely used equation in fluid mechanics, and assumes frictionless flow with no work or heat transfer. However, flow may or may not be irrotational. When flow is irrotational it reduces nicely using the potential function i It is also known as no-penetration boundary condition. Pressure boundary condition, which states that there cannot be a discontinuity in the static pressure inside the flow (since there are no shocks in the flow). If the flow turns enough so that it becomes parallel to the wall, we do not need to worry about pressure boundary condition. However, as the flow turns, its static pressure decreases (as described earlier). If there is not enough pressure to start with, the flow won't be. Real flow: Money flow: Kind of exchange: It includes the exchange of goods and services. It only involves the exchange of money. Difficulty in exchange: It has a lot of difficulties involved in the exchange of goods and services. There are no such difficulties in terms of money flow. Alternative names: It is also known as physical flow

Types of fluid flow. In physics, fluid flow has all kinds of aspects: steady or unsteady, compressible or incompressible, viscous or non-viscous, and rotational or irrotational to name a few. Some of these characteristics reflect properties of the liquid itself, and others focus on how the fluid is moving RealFlow refers to the flow of factor services from household to firms and flow of goods and services from firms to households. Money Flow refers to the flow of factor payments to household by firms and flow of consumption expenditure from household to the firms. Other Name. It is also knownas Physical Flow Realflow is a very powerful Cinema 4d plugin for liquid simulation. You can control each and every parameter and it's really simple to use. Realflow not only used in commercials but also used in the production and video games industry. The popular films are Avengers, ice age 4, Vikings, and many more

Circular flow: Real and nominal flows Thinking like an

  • The vortex lattice method is built on the theory of ideal flow, also known as Potential flow. Ideal flow is a simplification of the real flow experienced in nature, however for many engineering applications this simplified representation has all of the properties that are important from the engineering point of view. This method neglects all viscous effects. Turbulence, dissipation and boundary layers are not resolved at all. However, lift induced drag can be assessed and, taking.
  • Real Flow - It refers to the flow of factor services (land, labor, capital, and enterprises) from household to firms and the flow of goods and services from firms to households. It is also known as 'Physical Flow'
  • *Answer -* Capital goods are also known as intermediate goods, durable goods or economic capital. They are different than financial capital, which refers to funds companies use to grow their businesses. Natural resources not modified by human hands are not considered capital goods, although both are factors of production
  • Q.3. Differentiate real flow and money flow. Answer: Basis: Real Flow: Money Flow (a) Meaning: It is the flow of factor services from households to firms, and the flow of goods and services from firms to households. It is the flow of factor payments by firms to households, and the payment for goods and services by households to firms. (b) Medium of exchang
  • It is also known as advective acceleration. The second reason is due to the unsteadiness of the flow, that is due to the change in the local velocity of the fluid particle as a function of time. This is called as local acceleration. 4. Methods of describing Fluid Motion Langrangian Method : It describes a defined mass (position, velocity, acceleration, temperature , pressure, etc) as functions.

It is also defined as the line which is obtained by joining the tops of all vertical ordinates showing sum of the pressure head and kinetic head from the centre of the pipe. 5. What is hydraulic gradient line? Hydraulic gradient line gives the sum of (p/w+z) with reference to datum line. Hence hydraulic gradient line is obtained by subtracting v2 / 2g from total energy line. 6. What is meant. . National Income divided by population is known as A) GNP B) GDP C) Disposable Income D) Percapita Income 7. New economic policy has been adopted by India in the year A) 1957 B) 1991 C) 2014 D) 2016 8. Credit creation is the major function of A) Commercial Banks . B) Central Bank C. We will show that this important result can also be extended to airfoils the only position for the rear stagnation point sustainable in a real flow is at the trailing edge, as illustrated in Fig. 6.1 (d). Only with the rear stagnation point at the trailing edge does the flow leave the upper and lower surfaces smoothly at the trailing edge. This is the essence of the Kutta condition first. Filip Hodas, also known as Hoodass, is a freelance 3D artist from Prague, Czech Republic. He may be called one of the best digital artists due to his bizarre and eye-opening renderings. Hoodass is highly praised for the series that depict pop culture icons and their decay, showing us how all these well-known characters from cartoons, movies and video games will soon be forgotten and will fade.

. It is, therefore, called national product as often as national income. All the flows in an economy can be classified into Real Flows or money Flows. Remember, households are owners of factors of production as well as. RealFlow 10 introduces the new DYVERSO multiphysics solver, a highly-optimized CPU and GPU particles solver where different types of materials are simulated within the same framework and are able to interact with each other. The HYBRIDO solver is also better in terms of speed and memory. There are hundreds of issues fixed, improving the overall stability of the software, new features for a. It is a programming interface that allows users to create RealFlow plug-ins. Examples of plug-ins currently made with the RealFlow C++ SDK include: the Morph and CrowdFlow daemons, and also the CmdSendJob, which has to be loaded in order to use RealFlow's Job Manager. There are also external developers currently selling RealFlow plug-ins, for example V-Motion, which offers the widely.

How are money flow and real flow different

  • Continuum Assumption. The continuum assumption, also known as the continuum hypothesis, is an idealization of fluid mechanics that presumes that the properties of a fluid, like velocity, pressure, and density can be defined at any infinitesimal point. Fluids are actually comprised of individual molecules, each with their own motion, but above the microscopic scale these velocities are averaged.
  • Start studying Final Exam. Learn vocabulary, terms, and more with flashcards, games, and other study tools
  • Economic value added, also called residual income, is defined as the difference between a firm's ROA _____ _____ _____ and multiplied by the capital invested in the firm. cost of capital True or false: One important way to express return on assets is the ratio of the firm's operating income to its total assets

Also Read : Mass Flow Calculations. What is the difference between Insertion Type and Full Bore Type meter? As explained in question 7 above the full Bore Meter measures the average velocity. The Insertion Type measures velocity at only one point. So in fact Insertion Meters are velocity meters and not real flow meters. Naturally the accuracy. This phenomenon is known as the Magnus effect. Although the lift generated by a rotating cylinder can match or exceed the lift achievable by a wing of similar size, the cylinder is not a satisfactory lifting device because of its unavoidably large drag. boundary layer separation Ω L' A rotating sphere also exhibits the Magnus effect, and here it has a strong influence on many ball sports. as a Realflow noob i have a problem with a fluid. Edges.JPG . in glass simulation. The top particles of the liquid always stick to the glass and i never get a nice and even top - see picture. Does anyone know which parameter can change this? It's a SPH Fluid with 32 / 330 Min / Max Substeps Thanks for any advice! You do not have the required permissions to view the files attached to this post.

Real Flow also had a press release at the turn of 2019 announcing his name change to Marcus Money, aiming to get back to his roots by using his actual first name with the suffix he's always been motivated by - money. He is due to release his long awaited 4th Studio Album titled Who Am I this year, with the official date still TBA. He. Also, on the right side is your ownership in the ladder, meaning your equity of $4. Liabilities + Equity = Assets. The left side of the Balance Sheet must equal the right side. People refer to this as the double-entry accounting process, or debits and credits. Assets are the possessions or items that are owed to us, known as Accounts Receivable.

Economic Analysis for Business Decisions MCQ With Answers

Let us know on the first day of the course and we will go the extra mile to make things right. If you are still not happy, we will refund 100% of your money. Funding your RealFlow Course We understand that it may not always be very easy to pay for your NextLimit RealFlow training upfront. That's why we offer a payment plan, which allows you. Therefore, whereas Kahn's multiplier is known as 'employment multiplier', Keynes' multiplier is known as investment or income multiplier. The essence of multiplier is that total increase in income, output or employment is manifold the original increase in investment. For example, if investment equal to Rs. 100 crores is made, then the income will not rise by Rs. 100 crores only but a. Kostenlos realflow for maya 1.0 herunterladen bei UpdateStar - Ein Player, der nahezu alle Videodateien abspielt, darunter DVDs, Video-CDs, MPEGs und DivX Buckingham π theorem (also known as Pi theorem) is used to determine the number of dimensional groups required to describe a phenomena. According to this theorem the number of dimensionless groups to define a problem equals the total number of variables, n, (like density, viscosity, etc.) minus the fundamental dimensions, p, (like length, time, etc.)

sector to the other sector corresponding to the real flow is referred to as the monetary flow. Thus, it is also known to borrow through financial markets. This sector adds three key elements to the circular flow model, i.e., taxes, government purchases and government borrowings. This is explained with the help of the following diagram called, Model 2. _____ ECONOMICS MODULE No. : 2 PAPER. Also the program is known as 'realflow Mac'. RealFlow is a stand-alone application for fluid and object dynamics. It is capable of simulating large-scale Hybrido fluids, highly detailed particles fluids, rigid and soft bodies, and wave surfaces. In addition to these technologies, RealFlow also provides a broad range of built-in tools to influence and control the dynamics of fluids and objects. . Exchange of goods can itself be known as barter, however, it would be very inconvenient. Therefore, money is used as a medium of exchange. Business sector spends money to purchase resources for the purpose of production from the resource market and receive money back by selling goods and services supplied through the product market. the business sector has to pay to. Its clear understanding is very necessary to know how an economy broadly works. It will also make it easy to grasp the alternative interpretations of National Income. In every economy, there are households on the one hand and productive enterprises or firms on the other. The function of households is to consume goods and services for the satisfaction of their wants; and the function of. The real flow does not necessarily follow the cosine-rule. More generally it can be said that (6) () x Meff = M. cosϕ. 25. [3] states that 0 < x < 1. According to [7]: x = 0.5, accord-ing to [8]: x = 0.75 and by the cosine-rule: x = 1.0. Also [9] sets . x = 1.0. [10] states that . x. is a function of lift coeffi-cient: x = f (C. L). Effective drag divergence Mach number, M. DD,eff. We take.

NCERT Solutions for Class 12 Macro Economics Introduction

Also, overhead transmission lines use aluminum conductors, because of the lower cost and lighter weight compared to copper conductors, although more cross-section area is needed to conduct the same amount of current The momentum integral equation for a two-dimensional steady compressible flow can be obtained by integration from the boundary-layer Equations (3.3.5) and (3.3.6b). 4 If we multiply Eq. (3.3.5) by (u e - u), multiply Eq. (3.3.6b) by −1, add and subtract qu(du e /dx) from Eq. (3.3.6b), and add the resulting continuity and momentum equations, we can arrange the resulting expression in the for As shown below, it is also possible to overcome these problems by using recent commercial solutions provided by different companies. Indeed, the real flow rate is never really known with a standard syringe pump. However, by using a flow sensor, it is possible to measure the real flow rate in real time. The use of a simple flow meter eliminates much of the experimental failure that arises. Metaphor. Extreme Programming (XP) was designed to produce vast amounts code and deliver software quickly and timely with less cost. To facilitate that process various practices have to be implemented, one of which is the practice of System Metaphor. Unfortunately, it is one of the least understood and is rarely put into practice as a result

Also remember that when Leakages = Injections, the economy will be in equilibrium. You will now learn how . changes in the injections. cause a . change in the equilibrium level of output. SECTION A: TYPICAL EXAM QUESTIONS QUESTION 1: 12 minutes (Taken from DoE Nov 2009) 1.1 Study the table below on the calculation of GDP and answer the questions that follow. CALCULATION OF GDP ACCORDING TO TH The above is not the real flow, just like what we did in Fetch Token, we need to create another session ourselves: It is also know as service account. A configured AssertionSession with handle token authorization automatically, which means you can just use it. Take Google Service Account as an example, with the information in your service account JSON configure file: import json from. The latter is also known as Navier-Stokes equation for motion of the fluid. International Journal of Scientific and Research Publications, Volume 7, Issue 8, August 2017 33 Cinema 4D, also known as C4D, is a 3D software suite developed by the German company Maxon, which is known for its efficient and powerful computing speed and 3D rendering plug-in function. Thanks to the increasingly large R&D team, the functionality of the remaining modules is second to none on the market. It is now mainly used on movies, advertisements, industry and other work fields. As a. You can also follow a prewritten script inside of Realeflow when talking with a seller to establish rapport, eliminate fear, and come to a quick agreement. 4. Fund The Deal . Select Private Lenders from the dropdown menu inside of Realeflow to find people who might be interested in funding your next real estate deal. Send out a prewritten direct mail campaign to set a meeting with a.

Video: MCQ Questions for Class 12 Economics Chapter 2 National

Real Flow Credit Fund Pty Ltd ACN 642 507 926, Real Flow Finance Pty Ltd ACN 164 355 051, Real Flow Distribution ACN 647 180 612 and their affiliates (collectively known as Real Flow and also referred to in this Policy as us, we and our) seek to provide the best possible service to its customers by providing the best possible range of financial products and services. We. Cash Flow (CF) is the increase or decrease in the amount of money a business, institution, or individual has. In finance, the term is used to describe the amount of cash (currency) that is generated or consumed in a given time period. There are many types of CF, with various important uses for running a business and performing financial analysis Professional traders also use this strategy to profit from funding rare arbitrage or hiding their real flow. Market traders are usually paid for bringing flow to these small exchanges. Although this strategy is legal, it causes volume inflation and creates an inexistent buy and sell flow. Forced Liquidation. Sometimes, a whale may prop prices to liquidate their exposure. They take advantage. Boom is also known as peak phase and it is a turning point in trade cycle. This phase is the highest point in economic recovery. In this phase there is a large number of production and also trade. There is also a high level of employment and also the job opportunities in limited amount to permit a good deal of labour mobility. Aggregate Demand will be equal with Aggregate supply. Overall it.

Types of Fluid Flow: Steady, Laminar, Turbulent Flow and

Also, known tricks (i.e. PUSH-to-RET) are used in order to hide the real flow. After deobfuscating it, we can see that in each case the algorithm is exactly the same—for each three files and for both stages (only parameters differ) Also, the liquidity may vary over a period, i.e. the volume of money circulating in the economy may change depending on the economy's state. So, if it is in a recession, the volume will decrease due to a decrease in national income. In contrast, it will increase in case of boom due to an increase in national income. These complexities can be understood by learning about the circular flow of. In this case, when the customer pays after 30 days passed when the revenues were earned, the company will debit cash and will also credit Accounts Receivable. The accrual method of accounting is supported under both generally accepted accounting principles (known as GAAP) as well as international financial reporting standards (known as IFRS. The pressure distribution upstream and downstream of the cylinder is also symmetric, which results in a zero-net drag force. However, experimental results yield very different flow patterns, pressure distributions and drag coefficients. This is because the ideal inviscid potential theory assumes irrotational flow, meaning viscosity is not considered or taken into account when determining the.

Therefore, the PCP with the metallic stator and rotor, also known as all metal PCP, becomes recognized as an alternative artificial lift method for both the cold and thermal production [8, 9]. It is applicable to a larger range of temperature almost up to 350°C, due to the high temperature tolerance of the metallic stator. To relieve the mechanical friction inside the pump, the metallic. where is the maximum total temperature, also known as stagnation temperature, and is called the static temperature of the gas moving at velocity . An intuitive way of explaining the relationship between temperature and flow speed is to return to the description of the vibrating gas molecules. Previously we established that the temperature of a gas is a measure of the kinetic energy of the.

Difference Between Real Flow And Money Flow In Points Value

The Tao of Flow: Taoism, Yoga, Zen Buddhism and Eastern Philosophy. Long before Mihaly Csikszentmihalyi developed Flow Psychology in the West, there were many similar philosophies in the East that were oriented toward the cultivation of optimal experience. Rooted in the ancient teachings of the Vedas, Eastern Philosophy is much more oriented. b. Domestic Income is greater than National Income. c. Value of output is equal to Value Added. Ans: (a) When net current transfer from abroad are zero. (b) When Net Factor Income from Abroad is negative. (c) When intermediate consumption is zero. 9. Distinguish between real flow and money flow We are talking of Wireless LAN (WLAN) that is to say, Wireless LAN, not to be confused with WAN course. Also referred Radio LAN (WLAN) if the communication medium is the radio (not light infrared for example).The stations of the wireless network can communicate directly with each other, we called Ad Hoc network type, or via relay terminals called APs (Access Points, PA) then it is an. Pair Programming - also known as (Peer Programming) - is an extreme programming technique in which programmers work in a pair at one workstation. The idea is similar to a pilot of a rally car - one is the driver, and his team mate gives instructions where what's ahead. Planning Game. Extreme programming software development methodology is becoming one of the top software development.

Important Questions for class 12 economics Investment

Total spending on goods and services is known as 'aggregate demand'. The total market value of output produced and sold is also known as'aggregate supply'. To measure aggregate demand in a closed economy, we simply add consumption spending (C), investment spending (I) and government spending (G). Therefore: Y = C + I + This history is used to provide the Data Lineage (also known as the Chain of Custody) of each piece of data. Each time that an event occurs for a FlowFile (FlowFile is created, forked, cloned, modified, etc.) a new provenance event is created. This provenance event is a snapshot of the FlowFile as it looked and fit in the flow that existed at that point in time. When a provenance event is cre This is an accurate representation of the Astronomical Clock Tower, also known as Cosmic Engine. It was created in Su Song Dynasty of ancient China on January 16, 1089A.D. It was a huge instrument on astronomy and was thought as one of the most important scientific and technological achievement of ancient China. Originally aired on an Ancient Discoveries episode, from the History Channel's.

What is the difference between money flow and real flow in

  • Three types of intake port designs are commonly used: tangential (also known as directional), helical and filling ports. Tangential ports are positioned to align tangentially with the outer diameter of the cylinder and at a relatively large angle relative to the cylinder axis. Tangential ports generate swirl through their orientation relative to the cylinder axis, Figure 10. A helical port on.
  • The PID controller is used to compare the real flow signal with the desired flow. The Bronkhorst Less waste & cost reduction: You know what you pump in real-time. Less down time; Fluid independent flow measurement and control - no need for recalibration when changing fluids. Real measurement of data on flow performance for quality and monitoring purposes, including a response alarm.
  • RealFlow Maya is not just liquids, but also granulars, viscous, viscoelastic, rigid, and elastic materials. Most of these different types of substances are able to interact. Sand can be washed away by water, rigid bodies are trapped in heavy snow, cream floats on top of coffee. Your creativity is the limit! GPU-powered simulations. The entire range of fluids and materials is GPU-accelerated.
  • RealFlow is a powerful VFX program for creating realistic liquid simulations for 3D & CG projects. It has been used on plenty of blockbuster films like Avengers and X-Men. The software is flexible enough for small and large water environments with GPU acceleration for faster iteration. It also comes with Python support which makes custom scripting a lot easier. RealFlow ships with a standalone.
  • Also the tool is known as RealFlow RenderKit for MayaRenderman Studio. From the developer: The RealFlow RenderKit is a set of tools that has been designed to facilitate the complex task of rendering RealFlow fluids. The RFRK consists of several procedural geometry shaders and a volumetric shader, and will dramatically simplify and accelerate your RealFlow workflow. The RFRK generates.
  • Realflow Consulting and Training. 2. In case you or your team want to learn Realflow or refresh Realflow knowledge, I offer you customized Realflow training that exactly fits your needs. I offer a basic course that will guide you through all parts of Realflow so you are able to do your own projects and get to know the workflows as well as the.
  • g soon'. However, you do get integration with 3ds Max's native World Space Modifiers and Particle Flow particle system, although the 1.0 release doesn't support motion blur on generated PFlow particles. And as with the Maya edition, simulations can be.

Know about main parameters and settings. How to do large-scale simulation with a huge amount of particles, and small-scale scenes with different viscosity settings . Make import-export information between RealFlow and 3D packages. Requirements. In this lessons we will learn all from the beginning, so you don't need to have any special knowledge from RealFlow. Description. Fluid simulation is a. Here is a small part of commercial i did using realflow... i did also shading, lightning and rendering ;) C&C welcom Real Flow Credit Fund Pty Ltd. OUR COMMITMENT TO PROTECT YOUR PRIVACY. Real Flow Credit Fund Pty Ltd ACN 642 507 926 and its affiliates (collectively known as Real Flow and also referred to in this Policy as us, we and our) seeks to provide the best possible service to its customers by providing the best possible range of financial products and services When goods and services flow from one sector of the economy to another, it is known as real flow. 15. Also, a correction term must be introduced to account for imports and exports outside the boundary. The income method works by summing the incomes of all producers within the boundary. Since what they are paid is just the market value of their product, their total income must be the total. The volume rate of flow through the pipes in series is the same throughout. Suppose a pipe line consists of a number of pipes of different sizes and lengths. See Fig. 13.37. Let d 1, d 2, d 3 be the diameters of the component pipes. Let l 1, l 2, l 3 be the lengths of these component pipes. Let v 1, v 2, v 3 be the velocities in these pipes

Real flows

There are two real flows in the circular model:

  • Factors of production from households to firms
  • Good and services from firms to households

Factors of production from households to firms

From households to firms, there is a flow of factors of production through the factor market, as illustrated by the green dotted line in the red circle.

This the is a real flow. An example of this flow would be you leaving your house in the morning to go to work at a firm. This is an example of a real flow of labour.

Then there is also the flow of capital, land and entrepreneurs from households to firms. This real flow of the factors of production takes place through the factor market.

Goods and services from firms to households

Firms use the factors of production to produce goods and services that they make available to households through the goods market. This is the real flow of goods and services from firms to households, and it is indicated by the green dotted line in the red circle in the following diagram.

An example of this flow would be the actual groceries you buy from, say, your local supermarket.

Monetary or money flows

There are two monetary flows in the circular model:

Difference Between Real Flow And Money Flow In Points Calculator

  • Income from firms to households
  • Spending from households to firms

Income from firms to households

From firms to households, there is an income flow through the factor market as firms pay households for the use of the factors of production owned by households, as indicated by the orange solid line in the blue circle in the following diagram. This is a monetary flow.

An example of this flow would be you receiving payment in the form of a wage by the firm you are working for. Rent for land, interest for capital and profits for entrepreneurs are all monetary flows and part of the income flow.

Spending from households to firms

Households use their income to pay for the goods and services they receive from firms. This payment for goods and services is a monetary flow from the households to firms through the goods market as indicated by the orange solid line in the blue circle in the following diagram, and it is the spending flow. An example of this flow would be when you pay for your groceries.

In the following video clip Willie explains the difference between real and nominal flows: