In the Circular Flow Diagram, Saving

question 8

Multiple Choice

In the circular flow diagram, saving

• A)is a leakage and investment is an injection.
• B)and investment are both injections.
• C)is an injection and investment is a leakage.
• D)and investment are both leakages.

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Definitions:

Total Interest

The overall amount of interest paid on a loan or earned on an investment over a specific period.

Compounded Quarterly

A compound interest calculation where interest is added to the principal every three months.

Quarterly Payments

Payments that are made four times a year at three-month intervals.

Final Payment

The last installment paid to settle a debt, which may include principal and interest.