Question

Question text

In the circular flow of income and spending, i.e. the basic flow of income and spending between households and firms supplemented by the foreign, financial and government sectors

a.

exports are leakages from the circular flow.

b.

taxes are leakages from the circular flow.

c.

imports are injections into the circular flow.

d.

investment is a leakage from the circular flow.

e.

savings are injections into the circular flow.

Answer 1

c) Imports are injections into the circular flow.