The circular flow of income model illustrates how money moves through an economy between households and firms. In this model, injections are external sources of income that enter the flow ...

Learn how to use the perpetual growth method and the exit multiple method to incorporate industry trends and competitive dynamics in cash flow forecasting for terminal value.

Leakage is an economic term that describes capital or income that escapes an economy or system in the context of a circular flow of income model. It results in a gap between supply and demand.