A Leakage Occurs in an Economy When

Multiple Choice

A leakage occurs in an economy when:

A) part of business revenue does not end up as income in the circular flow.
B) transfer payments grow during recessions in an economy.
C) the government ends up spending more on fiscal policy than it intended to spend.
D) part of income is not spent on the country's output but is used for savings, taxes, or imports.