Which of the following are functions of the financial sector shown at the top of the open-economy circular flow diagram?
A) Lending to individuals so that they can consume more than they currently earn.
B) Forcing the government to fully cover all expenditures with tax collections.
C) Channeling savings from savers to borrowers.
D) All of the above.
E) a and c only.
Correct Answer:
Verified
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