Question

Following is an example of leakage from the circular flow of income: *
1 point
a. Investment
b. Exports
c. Taxes
d. Consumption expenditure​

Answer 1

Answer:

An example of leakage from the circular flow of income: Taxes

Explanation:

For example, in the Keynesian depiction of the circular flow of income and expenditure, leakages are the non-consumption uses of income, including saving, taxes, and imports. ... Savings, taxes, and imports are "leaked" out of the main flow, reducing the money available in the rest of the economy.