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Basic Concepts & the Circular Flow · Question 64 of 72

Question 64

MediumOriginal question

The circular flow of income stays at the same level when

Options for question 64

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. What leaves the flow is exactly made up by what enters it.

  2. If leakages are larger, spending and income shrink; if injections are larger, they grow.

Concept
Leakages and injections in balance
Typical time
70 s
Your time
—
The rule this testsThe circular flow of income
Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.

Practise this chapter →

Ten questions from Basic Concepts & the Circular Flow, at your own pace.