Why don't the "taxes and subsidies" flows and "taxes and transfers" flows feed into the aggregate expenditures flow (blue solid line) or the savings flow (green dotted line)?

1. These flows are captured but only after households make their consumption-saving decisions and firms make their investment decisions.
2. These flows are not capture directly because they are not government consumption of goods & services is part of circular flow.
3. Because the circular flow captures spending of firms and households, not the government.

Choose the correct option from below:

Group of answer choices

All the options provided

1 and 3 only

2 and 3 only

1 and 2 only