Which of the following is an example of an injection into the circular flow of income and expenditure?

Question

Quizplus · Accepted Answer

An injection into the circular flow of income and expenditure refers to any addition of income to the economy from the external sources outside of households, firms, or government. Government spending is an example of an injection because it adds to the total output of the economy and increases the overall income and expenditures. Imports (B), disposable income (C), net taxes (D), and savings (E) are not injections; in fact, they are part of the circular flow of income and expenditure, either as leakage or as part of the flow.

Which of the Following Is an Example of an Injection