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Which one of the following is NOT an example of leakage in the circular flow of income? - Economics

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Question

Which one of the following is NOT an example of leakage in the circular flow of income?

Options

  • Taxation

  • Import

  • Investment

  • Saving

MCQ
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Solution

Investment

Explanation:

The circular flow of income does not consider investment to be a leakage from the flow of income.

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