Which of the Following Is an Example of a Leakage

question 123

Multiple Choice

Which of the following is an example of a leakage into the circular flow of income and expenditure?

• A)Saving
• B)Exports
• C)Government expenditure on goods
• D)Transfer payments
• E)Investment by firms

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Definitions:

Sale

The exchange of goods or services for money, forming the basis of revenue for most businesses.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically entailing fixed interest payments and principal repayment upon maturity.