A Circular Flow Diagram That Includes the Government and the Foreign

Multiple Choice

A circular flow diagram that includes the government and the foreign sector shows that the role of the Canadian government is

A) only to provide services to households and firms.
B) only to collect net taxes from households and firms.
C) only to purchase goods and services.
D) both to provide services and to collect net taxes from households and firms.
E) to provide services to,and collect net taxes from,households and firms,and to purchase goods and services.