Which of the following does NOT represent a leakage out of the multiplier process?
A) income tax
B) savings
C) imports
D) consumer spending

Question

Quizplus · Accepted Answer

Leakages in the multiplier process are withdrawals from the circular flow of income that reduce the money available for further spending, such as income tax, savings, and imports. Consumer spending, however, is an injection into the economy, not a leakage, as it directly contributes to economic activity by increasing demand for goods and services.

Which of the Following Does NOT Represent a Leakage Out