circular flow model, economics homework help
The point of a circular flow model is to show where the money comes and goes within an economy. Investments , government purchases, transfer payments, and exports are injections of spending that are put into the circular flow model whereas savings, net taxes, and imports are leakages that take away from the flow. Both leakages and injections are equal in the circular flow model.
Agree with 2- 3 sentences
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