Which of the following consists only of injections into the circular flow of income?
Select ONE answer:
- exports, government spending and investment
- government spending, investment and savings
- imports, investment and taxation
- imports, savings and taxation
Show your workings to arrive at your answer, and explain and justify your reasons:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple choice question is suitable for Economics KS5 classes.
The answer is 1
- Correct: Exports, government spending and taxation are all injections.
- Although government spending and investment are injections, saving is a leakage.
- Investment is an injection but savings and taxation are leakages
- Imports, savings and taxation are all leakages.
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