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dalvyx [7]
3 years ago
13

Explain the roles of taxation and government expenditure in the circular flow of income

Business
1 answer:
STatiana [176]3 years ago
6 0
The role of taxation in the circular flow of income, is basically to have a medium of revenue for the government, if the government is able to earn money, they are able to spend it on the economy.
So then the role of Government expenditure is to make sure the money goes back into the economy, if the government were to save the money, the economy will have restriction to grow, if all the money the government creates from tax was put back into the economy by spending in say, Heath, Education, Investment, the economy can grow because then household will spend money from their income to utilise these industries.
Hopefully this helps!
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In the past few years, the demand for donuts has decreased. this would be illustrated by a change from?
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The decrease in demand would be illustrated by a change from A to C.

<h3>What will be the change?</h3>

The demand curve is a downward sloping curve that shows the relationship between price and the quantity demanded. There is a negative relationship between price and quantity demanded.

A change in demand is caused by other factors other than the price of the good. Other factors include a change in income, a change in consumer taste or a change in the price of substitute goods.

When there is a change in demand, the demand curve would shift either to the right or to the left. When demand decreases, the demand curve would shift to the left. When demand increases, the demand curve would shift to the right.

Since, the demand for donuts have decreased, the demand curve would shift to the left. This would be a shift from A to C.

Please find attached the complete question. To learn more about the demand curve, please check: brainly.com/question/25140811

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The gross pays is 675.00
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3 years ago
Demand for individual products can be driven by product life cycles. <br> a. True <br> b. False
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To finance some manufacturing tools it needs for the next 3 years, waldrop corporation is considering a leasing arrangement. the
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After tax cost of debt               6%
Dep per year                          1600
Tax sav from dep                   640
cost of owning       0               1
interest                                  -480
tax saving                               192
maintence                                 -240
maintenece saving                     96
Depn tax saving                          640
loan repay
net cash cost                              208
PV cost of owning (6%)             -3474
cost of leasing
lease payment                           -2100
Tax savings from lease                840
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PV cost lease 6%                     -3368
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3 0
3 years ago
A securities analyst reports that a cyclical change in non-durable goods has occurred on the downside over the last quarter. Whi
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D) Shares in a brewery

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