Leakages (Withdrawals) to circular flow in economics

Leakages (Withdrawals) to circular flow in economics

Leakages (Withdrawals). These are items (elements) which reduce the level of circular flow of

OR.

Leakages are subtractions from the circular flow of income. They lead to decrease in the amount of money flowing in the circular flow of income.

Examples of leakages include savings(S), import expenditure (M) and taxes (T).

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