Which of the following are examples of injections?
A) government purchases,net taxes and exports
B) government purchases,investment spending and exports
C) net taxes,imports and household saving
D) household saving,imports and government purchases
E) exports,imports and household saving

Question

Quizplus · Accepted Answer

Injections refer to the spending flows that add to the circular flow of income and output by injecting spending from outside the household and business sectors. Government purchases, investment spending, and exports are examples of injections because they are expenditures made by the government, firms, or foreigners that add to the economy's total output and income. Household saving, net taxes, and imports are leakages from the circular flow and reduce the economy's total output and income. Therefore, option B is the correct choice as it includes injections only.

Which of the Following Are Examples of Injections