Injection into the circular flow are ______ and __________?
Correct answer: C. investment government expenditure exports
- A. consumption investment exports
- B. investment exports transfer payments
- C. investment government expenditure exports
- D. taxes exports, transfer payments
Explanation
Injections add spending to the circular flow: investment by firms, government expenditure and exports purchased by foreigners. The corresponding leakages are saving, taxes and imports.
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