Consider the Circular Flow of Expenditure and Income in the Canadian

question 107

Multiple Choice

Consider the circular flow of expenditure and income in the Canadian economy.Which of the following is an injection into the circular flow?

• A)imports
• B)taxes
• C)saving
• D)consumption
• E)investment

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Definitions:

Bottom-Up Budgeting

A budgeting method where the budget is created with input from lower-level employees, leading up to a total company budget.

Extrapolation

The process of estimating, beyond the original observation range, the value of a variable on the basis of its relationship with another variable.

Previous Year's Budget

The financial plan containing income and expenditure for the prior year, used as a reference or benchmark for current financial planning.

Forecasting

The process of predicting future events, trends, and behaviors based on historical data and analysis.