Which of the following is considered a leakage?
A)Business investment.
B)Taxes.
C)Spending on services.
D)Exports.

Question

Quizplus · Accepted Answer

Leakage refers to the amount of money that is taken out of the economy and not spent on goods and services. Taxes can be considered a leakage as they reduce the amount of disposable income people have to spend on goods and services. Business investment, spending on services, and exports are not considered leakages as they contribute to the economy by creating jobs and income.

Which of the Following Is Considered a Leakage