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Total Expenditure Equals Total Income

Question 25

Multiple Choice

Total expenditure equals total income


A) if firms earn zero profit.
B) if firms do not save for future investment.
C) because firms pay out everything they receive as income to the factors of production.
D) only if net taxes equals government expenditures on goods and services.
E) only if firms sell all the goods they produce in a given time period.

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