Which of the following is an example of an injection into the circular flow of income and expenditure?

Question

Quizplus · Accepted Answer

Transfer payments, such as social security or unemployment benefits, involve the government injecting money into the circular flow by giving money to households without requiring any immediate production or exchange of goods or services. This increases the income and expenditure of households, leading to a multiplier effect in the economy.

Which of the Following Is an Example of an Injection