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How will taxation influence the circular flow model

User Znatz
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Answer:

TMS

Step-by-step explanation:

Taxes (T) imposed by the government reduced the flow of income.

Money paid to foreign companies for imports (M) also constitutes a leakage.

Savings (S) by businesses that would have been put to use are a decrease in the circular flow of an economy's income.

User Ibram Reda
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