CIMA BA1 · Chapter 1 · Question 2 of 10
Which of the following is a withdrawal (leakage) from the circular flow of income?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Spending on imported goods
Explanation
Imports are a withdrawal because the spending flows to foreign producers rather than domestic firms. Exports, investment and government spending are injections into the circular flow.
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