Consider the Circular Flow of Expenditure and Income in the Canadian

question 49

Multiple Choice

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?

• A)Loblaws imports cheese from Switzerland.
• B)You pay GST on your purchases.
• C)You contribute to your company pension plan.
• D)A Toyota plant in Canada imports car parts from Japan.
• E)The Government of Canada purchases new Coast Guard ships.

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Definitions:

Contract

A legally binding agreement between two or more parties that is enforceable by law.

Annually

Pertaining to something that occurs once every year or relating to a period of one year.

Line of Credit

A flexible loan arrangement with a bank or lender, allowing the borrower to draw funds as needed up to a certain limit.

Simple Interest

Interest assessed only on the original investment, without consideration for compounding.