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From course:

Economics A Level (DONEEEEEEE)

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Question:

How can the Budget Status affect the Circular Flow of Income

Author: eric_galvao



Answer:

-If there is a Budget Surplus, then more Money is Withdrawing overall from the Flow, but a Budget Deficit will be an overall Injection. -This is because Surplus means the Taxes are Greater than Spending, and Deficit is the Opposite


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