Question

explain why saving is treated as a leakage in a circular flow model? (long answer only)​

Answer 1

Answer:

Leakages refer to those variables that cause a withdrawal of money from the circular flow of income. ... In this regard, saving is treated as leakage as it takes money out from the circular flow system.

Explanation:

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Answer 2

Answer:

Leakages refer to those variables that cause a withdrawal of money from the circular flow of income. ... In this regard, saving is treated as leakage as it takes money out from the circular flow system.