Final answer:
Savings are considered a leakage (outflow) in the economy within the circular flow of macroeconomics because they remove funds from the immediate economic spending, potentially reducing economic growth and the multiplier effect.
Step-by-step explanation:
In the context of the circular flow of macroeconomics, the option that is considered a leakage (outflow) in the economy is D. Savings. Leakages, such as savings, taxes, and imports, are essentially withdrawals from the economy’s circular flow of income. They represent the portion of income that is not used for immediate consumption or spending within an economy. Savings specifically are referred to as a leakage because when households or companies save money, they effectively remove those funds from the circular flow, reducing the overall spending and hence the potential for economic growth and the multiplier effect.
Taxes also represent a leakage as they are funds paid to the government and are not available for immediate consumption or investment by households and firms. Similarly, imports involve spending on goods and services from other countries, which means this portion of the spending is exiting the local economy and flowing to another country. On the other hand, investment by firms and government spending are injections into the economy as they represent outflows of funds that stimulate economic activity.