In a four-sector model, the four injections and leakages are best paired as

injections: saving, taxes, imports; leakages: investment, government spending, exportsCorrect answerYour answerinjections: saving, investment, exports; leakages: taxes, imports, government spendingCorrect answerYour answerinjections: exports and imports; leakages: saving and taxesCorrect answerYour answerinjections: investment, government spending, exports; leakages: saving, taxes, importsCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

An injection adds spending that does not come from households' current income.
A leakage is income not spent on domestic output.

Concept: Injections and leakages
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe circular flow of income

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

In a four-sector model, the four injections and leakages are best paired as

Explanation