A circular flow diagram that includes the government and the foreign sector shows that
A) only Canadian firms provide goods and services.
B) only the Canadian government provides goods and services.
C) only the foreign sector provides goods and services.
D) only Canadian firms and the foreign sector provide goods and services.
E) Canadian firms,the Canadian government,and the foreign sector provide goods and services.

Question

Quizplus · Accepted Answer

A circular flow diagram that includes the government and the foreign sector shows that not only Canadian firms, but also the Canadian government and the foreign sector provide goods and services. Therefore, the best choice is E, which states that Canadian firms, the Canadian government, and the foreign sector provide goods and services.

A Circular Flow Diagram That Includes the Government and the Foreign