Injections into the income-expenditure stream include:
A) Transfer payments and imports
B) Government purchases and exports
C) Taxes and imports
D) Taxes and transfer payments

Question

Quizplus · Accepted Answer

Injections into the income-expenditure stream are those that increase the total spending in an economy, and they include government purchases and exports. Transfer payments and taxes are examples of leakages or withdrawals from the income-expenditure stream, while imports are considered both an injection and a leakage depending on whether they are bought from domestic or foreign sources. However, the question asks for injections only, so the best choice is B.

Injections into the Income-Expenditure Stream Include