Question

52 Leakages from the income-expenditure stream refer to
(A) Exports, savings and taxes
(B) Savings, taxes and imports
(C) Government spendings, exports and imports
(D) Investments, government spendings and exports
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Answer 1

Answer:

b is the correct option

Explanation:

Leakages from the spending stream include savings, taxes and imports. Injections include investment spending, government spending and exports. When leakages equal injections, total spending will equal total output and the macroeconomy will be in equilibrium.