Question 61
MediumOriginal questionWhich of these is a leakage from the circular flow of income?
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Income that households save is not spent on firms' goods, so it leaves the flow.
Investment, government spending and exports add spending to the flow: injections.
- Concept
- Leakages
- Typical timeTypical
- 70 s
- Your timeYours
- —
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