130k views
4 votes
Which best describes why taxes and savings are considered leakage factors? They take money out of households. They take money out of the economic system. They take money out of the economic sectors. They take money out of the financial sector.

User Leprosy
by
5.3k points

2 Answers

2 votes

Answer:

b

Step-by-step explanation:

2021

User Octavian Helm
by
5.1k points
3 votes

Answer:

They take money out of the economic system

Step-by-step explanation:

Taxes and savings decrease the net income of economic agents, which are households, firms, the financial sector, and the economic system as a whole. If there were no tax, the agents' income would be higher, ie, taxes are a leak of income that economic agents transfer to the government. Thus, if the government decides to use taxes, the money goes back to the economic system. However, if the government decides to save resources, the entire economic system experiences a leak.

User Liora
by
4.7k points