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In the Circular Flow Model with the Government Sector,transfers

Question 123

Multiple Choice

In the circular flow model with the government sector,transfers


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

Correct Answer:

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