Economics JAMB

In the circular flow of income model; the outflow variables represent?

A. Income
B. Expenditure
C. Injections
D. Leakages

Correct Answer:

Option D – Leakages

Explanation

The outflow of income from the CFI is called leakages.

Leakages take the form of:

  • Savings
  • Taxes
  • Import
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