Skip to main content

Flows of money are shown by dashed lines with directional arrowheads.

A flow labelled ‘Income’ runs from Firms to Households.

A flow labelled ‘Planned Consumption’ runs from Households to Firms.

A dashed line pointing vertically down from Households is labelled ‘Saving’.

A dashed line pointing vertically up to Firms is labelled ‘Planned Investment’.

 Taxation and the circular flow of income