The items listed below are examples of injections or leakages as they relate to the Circular Flow of National Income. From the list indicate which are injections and which are leakages. Taxation Investment Expenditure Exports Imports Write your answers in the spaces provided below.

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The items listed below are examples of injections or leakages as they relate to the Circular Flow of National Income - Leaving Cert Economics - Question 6 - 2019

Question 6

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The items listed below are examples of injections or leakages as they relate to the Circular Flow of National Income. From the list indicate which are injections and... show full transcript

Worked Solution & Example Answer:The items listed below are examples of injections or leakages as they relate to the Circular Flow of National Income - Leaving Cert Economics - Question 6 - 2019

Step 1

Injections

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Answer

Investment Expenditure: This represents spending by businesses on capital goods which helps in economic growth and job creation.
Exports: These refer to goods and services sold to other countries, contributing to national income.

Step 2

Leakages

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Answer

Taxation: This is the money collected by the government which reduces the money supply in the economy, hence a leakage.
Imports: This refers to goods and services purchased from other countries, which represents money flowing out of the economy.

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The items listed below are examples of injections or leakages as they relate to the Circular Flow of National Income - Leaving Cert Economics - Question 6 - 2019

Worked Solution & Example Answer:The items listed below are examples of injections or leakages as they relate to the Circular Flow of National Income - Leaving Cert Economics - Question 6 - 2019

Injections

Leakages

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