Multiple Choice
Which of the following statements is true regarding leakages and injections?
A) Government transfer payments must equal taxes because one is a leakage and the other is an injection.
B) Imports must equal exports since both are leakages.
C) Government purchases,investment,and exports are leakages from the circular flow of income and expenditure.
D) Savings and net taxes are leakages from the circular flow of income and expenditure.
E) Net taxes are an injection into the circular flow,while exports are a leakage.
Correct Answer:
Verified
Correct Answer:
Verified
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