money flow are opposite to real flow. how ?


Money flows are opposite to real flows. Because money flows 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 make 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 servics from the households to the producers. It is response to it , that the producers make payments to the households. So that, money flow from producers to the households in terms of factor payments.

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