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4.2.2 injections and leakages (multiplier not required)
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Additions and Withdrawals

Additions and Withdrawals

An injection is spending added to the circular flow from outside the household-to-firm loop. A leakage, also called a withdrawal, is income taken out of the flow rather than passed on as domestic spending. Investment is firms' spending on capital goods, government spending is spending by the government, and exports are spending by overseas buyers on domestic goods and services.

4.2.2 injections and leakages (multiplier not required) Lesson

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

Step-by-step lessons on CIE Intl A Level Economics 4.2.2 injections and leakages (multiplier not required). Each one builds up to exam-style questions.