Investment represents
A)A leakage from the circular flow,like saving.
B)A leakage from the circular flow,like taxes.
C)An injection into the circular flow,like government spending.
D)An injection into the circular flow, like imports.

Question

Quizplus · Accepted Answer

Investment is an injection into the circular flow like government spending because it is money put into the economy that creates jobs and stimulates economic growth. It is not a leakage like saving or taxes which take money out of the economy, nor is it an injection like imports which bring goods in from outside the economy.

Investment Represents