Total expenditure equals total income

A) if firms do not save for future investment.
B) if firms earn zero profit.
C) because firms pay out everything they receive as income to the factors of production.
D) only if net taxes equals government expenditures on goods and services.
E) only if firms sell all the goods they produce in a given time period.


Ans: C) because firms pay out everything they receive as income to the factors of production.

Economics

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Economics