In the circular flow model,injections and leakages are associated with
A)saving and investment.
B)consumption and investment.
C)realized investment and desired investment.
D)saving and taxes.

Question

Quizplus · Accepted Answer

In the circular flow model, injections refer to additions to the economy through investment, government spending, and exports, while leakages refer to savings, taxes, and imports. Saving and investment are directly related to these concepts as savings are a leakage and investments are an injection.

In the Circular Flow Model,injections and Leakages Are Associated with