Which of the Following Is an Example of a Leakage

question 89

Multiple Choice

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

• A) savings
• B) exports
• C) government expenditure on goods
• D) transfer payments
• E) investment by firms

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Definitions:

Compounded Quarterly

The method of calculating interest by adding it to the principal every three months, affecting the total amount of interest earned or paid.

Annuity

A monetary instrument providing a regular series of payments to a person, often utilized in preparing for retirement.

Quarterly Payments

Payments made once every three months, often used in the context of loans or investment returns.

Compounded Annually

A method of interest calculation where interest is added to the principal once a year.