Which of the Following Is a Leakage from the Circular

question 178

Multiple Choice

Which of the following is a leakage from the circular flow?

• A)government purchases of goods and services
• B)saving
• C)transfer payments
• D)exports
• E)consumption expenditures

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Definitions:

After-Tax Earnings

The net income of a company after all taxes have been deducted from revenues.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing corporation.

Large Stock Dividend

A distribution of a substantial number of shares to a company's shareholders, often used to conserve cash while still rewarding investors.

Market Value

Market value is the current price at which an asset or service can be bought or sold in the market.