Spending from borrowing, and saving from income are:
A) both injections into the spending stream.
B) both leakages from the spending stream.
C) injections into, and leakages from, the spending stream, respectively.
D) leakages from, and injections into, the spending stream, respectively.

Question

Quizplus · Accepted Answer

Spending from borrowing is considered an injection into the spending stream because it introduces additional funds into the economy. Saving from income, on the other hand, is viewed as a leakage because it withdraws money that could have been spent, reducing the overall spending.

Spending from Borrowing, and Saving from Income Are