Question 67
MediumOriginal questionIn an open economy, money spent by Indian households on goods made abroad is
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
Spending on imports goes to foreign producers, so it leaves the domestic flow.
- Concept
- Imports as a leakage
- Typical timeTypical
- 70 s
- Your timeYours
- —
Practise this chapter →
Ten questions from Basic Concepts & the Circular Flow, at your own pace.