Question
Asked By at
Answered By Expert
Expert · 3.2k answers · 3k people helped
Answer
* **Government spending** by the government sector: **Injection** * **Investments** made by the financial sector: **Injection*** **Taxes** collected by the government sector: **Leakage*** **Savings** by individuals outside a bank: **Leakage*** **Exports** purchased by the foreign sector: **Injection**
Explanation
Injections represent money flowing into the circular flow of income, increasing economic activity. Leakages, on the other hand, are withdrawals of money from the circular flow, decreasing economic activity.
🧑🏫 More Questions
👉 Interested in exploring further?
Chrome Extension
1. Search answers from our 90+ million questions database.
2. Get instantly AI Solutions powered by most advanced models like GPT-4, Bard, Math GPT, etc.
3. Enjoy one-stop access to millions of textbook solutions.
4. Chat with 50+ AI study mates to get personalized course studies.
5. Ask your questions simply with texts or screenshots everywhere.