Activities that remove spending from the economy are called
A) negative spending.
B) withdrawals.
C) injections.
D) reverse spending.

Question

Quizplus · Accepted Answer

Activities that remove spending from the economy are known as withdrawals, as they withdraw money from the circular flow of income and expenditure. Examples of withdrawals include savings, taxes, and imports. Injections, on the other hand, add spending to the economy, and include government spending, investment, and exports. Negative spending and reverse spending are not commonly used terms to refer to the concept of withdrawals.

Activities That Remove Spending from the Economy Are Called