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In the Circular Flow Model with the Government Sector, Transfers

Question 35

Multiple Choice

In the circular flow model with the government sector, transfers


A) to households flow in the same direction as do expenditures on goods and services.
B) flow in the same direction as do taxes.
C) flow only through the goods market.
D) to firms flow in the same direction as do rent, wages, interest, and profits.
E) flow in the opposite direction as do taxes.

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