Investment represents
A)A leakage from the circular flow,similar to saving.
B)A leakage from the circular flow,similar to taxes.
C)An injection into the circular flow,similar to government spending.
D)An injection into the circular flow,similar to imports.

Question

Quizplus · Accepted Answer

Investment represents an injection into the circular flow, similar to government spending. It is considered an injection because it adds to the total spending in the economy, leading to increased production and income. This is in contrast to savings, taxes, and imports, which are all considered leakages from the circular flow as they decrease the total spending in the economy.

Investment Represents