PRC-3 · Chapter 13 · Question 42 of 50
In the macroeconomic circular flow model, which of the following is definitively NOT classified as an 'injection' into the domestic economy?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Postponed consumption (Household savings)
Explanation
Savings represent money that is not spent on domestic goods and is hoarded in banks. It acts as a leakage or withdrawal, draining money from the circular flow.
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