6. Circular Flow of Income, Payments, and Production in the Global Economic System Flow of incomes Flow of expenditures for consumption & taxes Flow of productive services Flow of production of goods & services Producing units (mainly business firms and governments) Consuming units (mainly households)
7.
8.
9.
10. Types of Markets Producing units (mainly business firms and governments) Consuming units (mainly households) Flow of funds (savings) Flow of financial services, income, and financial claims Financial markets Flow of production Product markets Goods and services Flow of payments Flow of payments for consumption and taxes Flow of incomes Flow of incomes Factor markets Productive services Productive services
11.
12.
13. The Global Financial System Flow of financial services, incomes, and financial claims Demanders of funds (mainly business firms and governments) Flow of loanable funds (savings) Suppliers of funds (mainly households)