Leakages from the circular ?ow constitute:
A) savings, taxes and imports.
B) savings, government spending and exports.
C) investment, taxes and imports.
D) investment, government spending and exports.

Question

Quizplus · Accepted Answer

Leakages from the circular flow of income model refer to money that exits the economy and therefore is not used for consumption. These include savings (money not spent), taxes (money collected by the government), and imports (money spent on goods and services from other countries).

Leakages from the Circular ?Ow Constitute