Which of the following represents a leakage from the circular flow of income?

Choose the correct answer

Explanation

In the circular flow of income, withdrawals or leakages are amounts taken out of the economy. Taxes reduce the income available for spending, thus acting as a leakage. Investment and subsidies are injections, while consumption is part of the flow within the economy.

Which of the following represents a leakage from the… — Basic of Economics | PakQuizHub