Question

In the circular flow of income and spending: (2)
(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

d) Imports result in a decrease in the volume of the income flow.