Business

Jenna Lane

31 August, 18:00

In the circular flow of expenditure and income, why must the total value of production in an economy equal the total value of income?

A. Domestic expenditures on imports generally equal foreign expenditures on U. S. exports.

B. People tend to spend all of their income on goods and services.

C. Every penny spent on a good or service must end up as someone's income.

D. Taxes on the production of goods and services are determined according to individual income.