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4.2.2 injections and leakages (multiplier not required)

What is an injection, and what does it add to the circular flow?

A

Production reduced when households buy fewer domestic goods.

B

Spending transferred between households without reaching firms.

C

Income removed from the circular flow before it reaches domestic firms.

D

Spending added to the circular flow from outside the household-to-firm loop.

4.2.2 injections and leakages (multiplier not required) Flashcards

  1. Intl A Level
  2. /Economics
  3. /4.2.2 injections and leakages (multiplier not required)

28 flashcards on CIE Intl A Level Economics 4.2.2 injections and leakages (multiplier not required): the key terms and definitions you need to recall.