Saving is a leakage in the sense that
A)saving is lost to the economy and ultimately leads to stagnation.
B)the financial system often makes negative profits.
C)it often accompanies a trade deficit.
D)consumers spend less than their total income.

Question

Quizplus · Accepted Answer

Saving is considered a leakage because it represents income that is not spent on consumption, thus reducing the immediate flow of money in the economy.

Saving Is a Leakage in the Sense That