📝 Multiple Choice Question
Economics
Which of the following is NOT correct regarding circular flow of income?
A
Savings as well as government expenditure are injections to the circular flow.
B
The income of one sector becomes the expenditure of the other.
C
In a circular flow, leakages are equal to injections.
D
The real flow and monetary flow move in a circular manner in an opposite direction.
Explanation
In macroeconomics, savings represent a leakage or withdrawal from the circular flow of income, whereas government expenditure acts as an injection into the economy.
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