Which of the Following Statements Is True Regarding Leakages and Injections

question 30

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.