Question

What is the effect of Injections on the circular flow of income?

Options

• Injections increase the flow of income circulating in the economy.

• Injections reduce the flow of income circulating in the economy.

• Injections exclude Investment, Government Spending, and exports.

• Injections are physical factor services only.

Answer 1

Injections add income and expenditure to the circular flow. Investment, Government Spending, and exports are the stated injections.