Money Entering and Leaving the Circular Flow
Money Entering and Leaving the Circular Flow
Households receive income from firms and use some of it to buy goods and services. This creates a circular flow of income and spending between households and firms. Saving flows from households to the financial sector, while export spending flows from the foreign sector to domestic firms.
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.