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Circular_Flow_Enhanced

Circular_Flow_Enhanced - The Government Surplus or Deficit...

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Unformatted text preview: The Government Surplus or Deficit Balances the Requirements of the Capital Market and the Government Sector Income (Y = $1 ,1 00,000) Transfer payments (F= $1 00,000) Taxes (R = $1 00,000) Households Private saving (S = $300,000) Government deficit ($ 1 00,000) Government Government purchases of goods and services (G = $100,000) Private investment (I = $200,000) Business firms Consumption expenditures (C: $800,000) Exports ($1 00,000) Imports ($ 1 00,000) ...
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