Which of the following lists represent leakages from the circular flow?
A) Government purchases,net taxes and household saving.
B) Planned investment,net taxes and government purchases.
C) Household saving and planned investment.
D) Planned investment and net taxes.
E) Household saving and net taxes.

Question

Quizplus · Accepted Answer

Leakages from the circular flow of income refer to the non-consumption uses of income, which include household saving and net taxes. These are funds that are not immediately spent on domestic goods and services.

Which of the Following Lists Represent Leakages from the Circular