Sherry Garcia begins her first job after graduating from college and starts putting money away in a savings account. She believes she has removed this money from the circular flow between buyers and sellers that she studied in Introduction to Business. Is Sherry correct?

No, even though she has saved this money, the bank will turn invest the money back into the circular flow.

Explanation:

The circular flow of income is defined as a model that looks at the flow of money, goods, and services between economic agents.

Money is used to obtain goods and services. Goods and services flows in one direction while money flows in the opposite direction.

When Sherry saves money, the bank as an economic agent puts the money back into the circular flow in the form of loans. So Sherry is not taking the money out of circular flow.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.