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 Canadian firms is

A) only to produce and sell goods and services.
B) only to hire labour.
C) only to pay with net taxes for services from the government.
D) both to produce and sell goods and services,and to hire labour.
E) to produce and sell goods and services,to hire labour,and to pay with net taxes for services from the government.