Which of the Following Is an Injection into the Circular

question 15

Multiple Choice

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

• A)savings
• B)taxes
• C)government borrowing
• D)investment
• E)imports

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Definitions:

Investment Expenditures

Spending by businesses or individuals on capital assets that are expected to yield benefits or profits over the long term.

Interest Rates

The percentage of a sum of money charged for its use, typically by a bank to borrowers.

Profit Expectations

Anticipations or forecasts about the profits a business aims to achieve in a future period.

Loanable Funds

The loanable funds market is a concept in economics where the supply of and demand for loans determine the interest rate, including all forms of credit like loans, bonds, or savings deposits.