For what reason do economic use a circular flow model

Economists use circular flow models as a way to illustrate the way a market economy works and how the various parts of that type of economy are linked to one another.

The circular flow model is used to show how households and businesses are linked together.  It shows businesses buying from households in factor markets while households buy from businesses in product markets. 

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answer- your correct answer is actually college a. because college a has a good price loan and graduation rate. you have to compare it with other values also , that how many students graduated and how many from them have repaid the loan ( default loan rate ).

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