Leakages are spending that leaks out of the circular flow through government spending, business investment spending, and exports.

Name: Leakages are spending that leaks out of the circular flow through government spending, business investment spending, and exports.
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Question

Quizplus · Accepted Answer

Leakages refer to the saving, taxes, and imports that reduce the amount of money circulating in the economy. Government spending, business investment spending, and exports are injections that add to the circular flow, not leakages.

Leakages Are Spending That Leaks Out of the Circular Flow