Answer to Question #130830 in Macroeconomics for Sibusiso

Question

Which of the following statements is false

A savings are an important injection into the circular flow of income and spending in the economy

B taxes are a leakage or withdrawal from the flow of income and spending in the economy

C spending by households on consumer goods and services is called consumption spending

Answer 1

The false statement is:

A savings are an important injection into the circular flow of income and spending in the economy