Answer to Question #131220 in Macroeconomics for Bobby

Question

In the Circular Flow of Income:

a) investment results in a decrease in the volume of the income flow

b) Savings results in an increase in the volume of the income flow

c) Taxes result in an increase in the volume of the income flow

d) imports results in a decrease in the volume of the income flow

Answer 1

The correct answer is C; imports result in a decrease in the volume of the income flow