In a Simple Circular-Flow Diagram,firms

question 7

Multiple Choice

In a simple circular-flow diagram,firms

• A)purchase resources from households.
• B)purchase the output produced by households.
• C)receive income by selling resources to households.
• D)All of the above are correct.

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Definitions:

IRA

Individual Retirement Account, a saving tool for individuals to allocate funds for retirement with tax advantages.

American Opportunity Tax Credit

A rebate on legitimate educational expenditures for a qualifying student throughout the first four years of their university or college education.

Qualified Expenses

Expenses eligible for tax deduction or credit, typically in the context of education, healthcare, or investments.

AGI Limitation

A constraint or cap based on an individual's adjusted gross income (AGI) which affects eligibility for certain tax deductions, credits, or contributions.