Which of the following is an injection into the spending stream?
A) Taxes paid to the government.
B) Spending from transfer payments.
C) Spending from household earned income.
D) All of the above.

Question

Quizplus · Accepted Answer

Spending from transfer payments, such as social security or unemployment benefits, represents an injection into the spending stream because it is money that is given to individuals, which they then spend, adding to the overall economic activity. Taxes and spending from earned income are not considered injections in this context because taxes are a withdrawal from the economy, and spending from earned income is part of the circular flow of income and spending, not an additional injection.

Which of the Following Is an Injection into the Spending