In the Circular Flow Model with the Government Sector,transfers

question 151

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.