Which of the following is an example of an injection into the circular flow of income and expenditure?
A)Net taxes
B)Saving
C)Transfer payments
D)Government borrowing
E)Disposable income

Question

Quizplus · Accepted Answer

Transfer payments represent an injection into the circular flow of income and expenditure because they represent government spending that is not in exchange for goods or services, but rather is distributed as incomes to individuals or businesses. This injection can increase income and spending in the economy.

Which of the Following Is an Example of an Injection