Net taxes are ?
Correct answer: B. Taxes paid firms and households to the government minus the transfer payments made to firms and household
- A. taxes paid by firms and households to the government minus the cost of collecting the taxes
- B. Taxes paid firms and households to the government minus the transfer payments made to firms and household
- C. Taxes paid by firms and households to the government plus transfer payments made to firm and households
- D. government expenditures minus government revenues
Explanation
Net taxes equal taxes collected from households and firms minus transfer payments made to them. Transfers are subtracted because they return purchasing power to the private sector.
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