Discussion
In the circular flow of income and output, savings is:
Answer: B
Saving is a leakage from the circular flow of income, since it is income that is not spent on the goods produced. Investment, government spending and exports are injections. The answer is leakage of money, option B.
Leakages from the circular flow are saving, taxes and imports, and injections are investment, government spending and exports. Additions to capital stock is investment, an injection, so it is the opposite of saving.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development