Which of the Following Is an Injection into the Circular

question 61

Multiple Choice

Which of the following is an injection into the circular flow?  

• A) government spending 
• B) imports 
• C) taxes 
• D) saving

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Definitions:

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services purchased on credit.

Journal Entry

A record in the accounting journals that documents a financial transaction.

FICA Taxes

Taxes imposed by the Federal Insurance Contributions Act, funding Social Security and Medicare programs, withheld from employees’ pay and matched by employers.

Medicare Taxes

Taxes collected from employees and employers to fund the Medicare program, which provides healthcare benefits to retirees.