According to the circular flow diagram, which of the following is true?

I. The government is a buyer in the product market
II. The government is a seller in the product market
III. The government is a borrower and financial markets

I only
II only
III only
I and III only
II and III only

I don't know what it is, but the government taxes firms and consumers and then spend money or something... I'm just really confused. I don't know what that means in the context of a circular flow diagram since government isn't traditionally shown. Please help? Thanks

1 answer

nvm its I and III only