Which of the following is an injection into the circular flow?
A)savings
B)taxes
C)government borrowing
D)investment
E)imports

Question

Quizplus · Accepted Answer

Investment is an injection into the circular flow because it represents an increase in spending that is not part of the initial income flow. The circular flow model shows the interaction of households, businesses, and government in the economy, and injections such as investment contribute to economic growth and expansion. Savings, taxes, government borrowing, and imports are leakages from the circular flow because they reduce spending or remove money from circulation.

Which of the Following Is an Injection into the Circular