Questions
BECO011 Week 6 Practice quiz
Single choice
Based on the diagram above, the three INJECTIONS in the circular flow are:
Options
A.Investment, Government Spending, Exports
B.Savings, Taxation, Imports
C.Investment, Government Spending, Imports
D.Investment, Tax, Exports
E.Savings, Government Spending, Exports
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Step-by-Step Analysis
Question restatement: Based on the diagram above, the three INJECTIONS in the circular flow are:
Option 1: Investment, Government Spending, Exports. This corresponds to the standard definition of injections in the circular flow model: spending from investment on capital goods, government spending on goods and services, and spending on a country’s exports bringing money into the domestic economy. ......Login to view full explanationLog in for full answers
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