Which of the following is an injection into the spending stream?
A) saving by households and businesses.
B) government spending.
C) paying taxes by households and businesses.
D) importing foreign goods and services.

Question

Quizplus · Accepted Answer

Government spending is considered an injection into the spending stream because it represents additional funds being directed into the economy, which can stimulate economic activity. Unlike saving, paying taxes, or importing, which either remove money from the domestic spending cycle or redirect it, government spending directly adds to the total demand for goods and services within the economy.

Which of the Following Is an Injection into the Spending