Consider the circular flow of expenditure and income in the Canadian economy. Which of the following is an
Injection into the circular flow?

Question

Quizplus · Accepted Answer

Injection refers to the addition of income to the circular flow of expenditure and income. Investment is an injection since it represents spending by firms on capital goods such as buildings, machinery and equipment which creates income and employment in the economy. Imports, taxes, saving, and consumption are all leakages from the circular flow.

Consider the Circular Flow of Expenditure and Income in the Canadian