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

Question

Quizplus · Accepted Answer

Exports represent an injection into the circular flow of income and expenditure because they bring money into the economy from outside sources. This increases the total amount of income and expenditure in the economy. The other options listed represent withdrawals from the circular flow (consumption, savings, taxes) or a transfer payment within the circular flow (government borrowing).

Which of the Following Is an Example of an Injection