Question

Which one of the following statements is FALSE? (2)
(a) There are four broad groups of decision‐making units in the economy:
households, firms, government and the foreign sector;
(b) Savings are an important injection into the circular flow of income and
spending in the economy;
(c) Taxes are a leakage or withdrawal from the flow of income and spending in
the economy;
(d) Spending by households on consumer goods and services is called
consumption spending.

Answer 1

(b) Savings are an important injection into the circular flow of income and

spending in the economy;