Using the circular flow model for national income

Reference no: EM13700845

Using the circular flow (inner-tube) model for national income, what would be the effect of an increase in taxes, taken alone (that is, all other factors remaining unchanged)?

1) income would increase

2) income would decrease

3) income would not change

4) the direction of any income change would be indeterminate

Reference no: EM13700845

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