In circular flow of economy, consider the following statements.
A. Injections is any spending which is additional to the circular flow that increases the level of income. The examples are business expenditure, government expenditure and exports
B. Withdrawal is some income which is not passed on as an expenditure in the circular flow. It decreases the level of income in circular flow. The examples are savings, taxation and imports
C. For equilibrium in circular flow, planned injection should be equal to withdrawal
D. All of the above are true
Answer: Option D
This Question Belongs to Commerce >> Business Environment And International Business
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