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    Exam 24: Aggregate Demand and the Powerful Consumer
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    When Saving Leaks Out of the Circular Flow of Income
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When Saving Leaks Out of the Circular Flow of Income

Question 129

Question 129

Multiple Choice

When saving leaks out of the circular flow of income and spending,


A) total income necessarily falls.
B) it leaks out of the financial system.
C) it flows to borrowers.
D) it increases the size of the spending flow.

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