Use the Following to Answer Questions

question 175

Multiple Choice

Use the following to answer questions:
-(Figure 7-2: Expanded Circular-Flow Model) Use Figure 7-2: Expanded Circular-Flow Model. How does the government finance its spending?

• A) taxes of $150 plus borrowing of $70
• B) foreign borrowing and sales of stock of $110
• C) investment spending of $120
• D) net exports of $80

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Definitions:

Social Behaviour

Actions among individuals, shaped by social norms, cultures, and societal structures, that affect and are affected by others.

Motivated Group

A group of individuals with a high level of enthusiasm and willingness to achieve a common goal or task.

Assets

Resources or items of value owned by an individual or organization, which are expected to provide future economic benefits.