transactions – Can a Bitcoin address send Bitcoin to itself?

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I saw some transactions where an input address also appears as an output address.
For example, this transaction has one input and three outputs.

  Input Address/Amount            Output Address/Amount
        A / 3BTC                          B / 0.5BTC
                                          C / 0.5BTC
                                          A / 2BTC

Does this simply mean A paid itself in this transaction? Or does it mean something else?

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