Final answer:
In flow diagrams, arrows indicate direction and also the type of relations or transactions, such as imports, exports, and payments within economic models.
Step-by-step explanation:
In flow diagrams, arrows represent not only the direction but also the nature of relationships or transactions between different elements within the diagram. In flow diagrams, arrows indicate direction and also the type of relations or transactions, such as imports, exports, and payments within economic models. For instance, in circular flow diagrams within economics, arrows can denote the flow of goods and services in one way, and the flow of money in another.
When a foreign country is involved, arrows may indicate imports and exports as well as the corresponding payments for these goods and services. The arrows signify the direction of the transaction while also implying the type of interaction, such as the exchange of labor for wages or the trade of goods for money.