Leakages in the Circular flOw of Income Represent Additional Spending

question 84

True/False

Leakages in the circular flow of income represent additional spending on goods and services that does not come from the income earned by households.

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Definitions:

Vestibular Sense

The sense of body movement and position, including the sense of balance.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, crucial for hearing and balance.

Receptors

Specialized cells or proteins in the body that bind to specific molecules like neurotransmitters, hormones, or drugs, triggering a physiological response.

Muscles

Tissues in the body that have the ability to contract, thus enabling movement and support of various body functions.