Economy, asked by divyadeora2015, 5 months ago

how injection and leakages affect circular flow of income in four sector model​

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Answered by Anonymous
1

Answer:

When households and firms save part of their incomes it constitutes leakage. ... Injections increase the flow of income. Injections can take the forms of investment, government spending and exports. As long as leakages are equal to injections, the circular flow of income continues indefinitely.

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