Which of the following is NOT an injection into the spending stream, or into the circular flow model?
A) Business investment spending.
B) Household spending from earned income.
C) Government purchases of goods and services.
D) Foreign spending on U.S.-produced goods and services.

Question

Quizplus · Accepted Answer

Household spending from earned income is considered a circulation of existing money within the economy, not an injection. Injections are considered to be new money entering the economy, such as business investment, government spending, and foreign spending on domestic goods and services.

Which of the Following Is NOT an Injection into the Spending