Answer to Question #131257 in Macroeconomics for Maite

Question

In the circular flow of income and spending:
(a) Investment results in a decrease in the volume of the income flow;
(b) Savings result 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 result in a decrease in the volume of the income flow.

Answer 1

(b) and (d)