With examples distinguish between a ‘leakage’ and an ‘injection’ in the circular flow of income.

With examples distinguish between a ‘leakage’ and an ‘injection’ in the circular flow of income.

‘Injections’ are the introduction of income into the flow, such as additions to investment, government expenditure and exports. “Leakages” are the withdrawal of income from the flow, such as savings, taxation and imports.

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