Question

Which statement is true?

A Savings are a leakage in the circular flow of income.
B Households pay wages to businesses.
C Exports are leakages in the circular flow of income.
D Taxes paid to the government have no direct effect on the economy.

Answer 1

A is your answer. Have a good day!

Answer 2

A Savings are a leakage in the circular flow of income.

Step-by-step explanation:

Saving is the action of separating a part of the income that a person or company obtains in order to save it for future use, be it for any expected or unforeseen expenses, economic emergency or a possible investment. economic theory savings refers to the part of income or income not dedicated to consumption, but for other purposes and is an important economic concept. There are various types of savings as well as various financial instruments designed to increase the savings that are intended to be made.