Leakages in the circular ﬂow of income represent additional spending on goods and services that does not come from the income earned by households.

Name: Leakages in the circular ﬂow of income represent additional spending on goods and services that does not come from the income earned by households.
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Question

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Leakages in the circular flow of income represent the opposite - they refer to income that is not spent on goods and services and instead is saved, taxed, or used for imports.

Leakages in the Circular ﬂOw of Income Represent Additional Spending