Question

Which of the following is not leakage in the multiplier process?​

Answer 1

Answer:

Taxation is another important leakage in the multiplier process. ... No doubt, if the Government expenditure increases by an amount equal to the taxation, it would not have any adverse effect on the increase in income and investment and in this way there would be no leakage in the multiplier process.

Answer 2

Answer:

Taxation:

Taxation is another important leakage in the multiplier process. ... No doubt, if the Government expenditure increases by an amount equal to the taxation, it would not have any adverse effect on the increase in income and investment and in this way there would be no leakage in the multiplier process.