Which of the following is a leakage from the spending stream?
A) Business saving and taxes.
B) Business spending from retained earnings.
C) Business investment in replacement parts financed by the sale of stock.
D) All of the above.

Question

Quizplus · Accepted Answer

Leakages from the spending stream refer to any use of income other than for direct purchase of domestically produced goods and services. Business saving and taxes are considered leakages because they represent portions of income not immediately returned to the spending stream through consumption or investment in domestically produced goods.

Which of the Following Is a Leakage from the Spending