The government purchases goods from firms and also factors of production from households. Thus government purchases of goods and services are an injection in the circular flow and taxes are leakages in the circular flow.

When households need a good or service, their money flows to the product market in a process called consumer spending. To provide goods and services to households, the product market purchases them from businesses, generating revenue.

View full document. See Page 1. the flow of goods and services which is called Real Flow and the other flow is the flow of moneywhich is called monetary flow. The product market in a circular flow model is the business sector where the goods and services produced and sold.

What is your role in the circular flow of finance? economic growth possible.

What two markets are represented in the circular-flow diagram? The market for goods and services and the market for factors.

The basic purpose of the circular flow model is to understand how money moves within an economy. It breaks the economy down into two primary players: households and corporations. It separates the markets that these participants operate in as markets for goods and services and the markets for the factors of production.

clockwise arrows

Leakages can be reduced by increasing the direct commer- cial linkages with local producers and tourism operators. For example, farmers neighbour- ing Bwindi Impenetrable National Park in Uganda received training in bulking and grading their produce, and in marketing it to tourism camps.

In technical analysis, a measure of the change in value to a security on a trading day. It is calculated by averaging the high price, low price, and closing price and multiplying the result by the trading volume.

9 other terms for money flow. flows of money. money train. cash flows. finance flows.

The best-known indicator in this category is Granville’s Obv. Later variations include Markstein’s volume price trend (Vpt) and the volume flow indicator (Vfi), which I introduced in my June 2004 Stocks & Commodities article (see “Suggested reading” at the end of this article).

Money flow is calculated by averaging the high, low and closing prices, and multiplying by the daily volume. Comparing that result with the number for the previous day tells traders whether money flow was positive or negative for the current day.

Calculation

1. First, the period’s Typical Price is calculated.
2. Next, Money Flow (not the Money Flow Index) is calculated by multiplying the period’s Typical Price by the volume.
3. If today’s Typical Price is greater than yesterday’s Typical Price, it is considered Positive Money Flow.

The MFI indicator (money flow index) is similar to RSI but incorporates volume as well. MFI is not as popular as RSI, however, MFI works just as well, and in many cases, works better than RSI for short-term trading and swing trading.

Description. The Moving Average Convergence/Divergence indicator is a momentum oscillator primarily used to trade trends. Although it is an oscillator, it is not typically used to identify over bought or oversold conditions. It appears on the chart as two lines which oscillate without boundaries.

If the two moving averages are diverging, then momentum is increasing, and if they are converging, then momentum is weakening. The distance between the two is graphed in what is called a MACD line, as seen in black in Figure 1. Figure 1: Two-line MACD.