PRC-3 · Chapter 9 · Question 6 of 45
Which of the following activities would be classified as an 'injection' into the circular flow of a nation's income?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A foreign company investing heavily to build a new factory in the country
Explanation
Investment (I), Government spending (G), and Exports (X) represent injections that introduce new money into the domestic circular flow.
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