Question

Select the correct answer.

Which statement is true?

A.

Savings are a leakage in the circular flow of income.

B.

Households pay wages to businesses.

C.

Exports are leakages in the circular flow of income.

D.

Taxes paid to the government have no direct effect on the economy.

Answer 1

A. Savings are a leakage in the circular flow of income

B. Households pay wages to businesses

C. Exports are leakages in the circular flow of income

D. Taxes paid to the government have no direct effect on the economy

Answer 2

Savings are a leakage in the circular flow of income