Question

Decisions regarding investment are made by​ __________, whereas decisions regarding saving are made by​ __________.

a. Firms and the​ government; consumers and the government
b. ​firms; consumers and the government
c. ​consumers; firms and the government
d. ​government; consumers and firms

Answer 1

Answer: a. Firms and the​ government; consumers and the government

Step-by-step explanation:

In a circular flow diagram the households earn from factors of production and save their money into the financial sector. While, the Firms and the government are engaged in the production of goods and services and thus need to make decisions about investments. The government sector also saves its money into the financial sector.

Thus, the correct option is a.