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Total Expenditure Equals Total Income

Question 29

Multiple Choice

Total expenditure equals total income


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

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