Which of the Following Statements Is True Regarding Leakages and Injections

question 168

Multiple Choice

Which of the following statements is true regarding leakages and injections?

• A) Government transfer payments must equal exports 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.

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