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Injections into the circular flow of income are a result of money borrowed by households and firms from different external sources, like financial institutions. That is, the money is not being utilised elsewhere in the economy The concepts of injections and withdrawals (also known as leakages) are integral to understanding the circular flow of income model
They influence the level of economic activity and determine the overall equilibrium in an economy. Some transactions take money out of the economy Injections are additions to the economy’s income that counterbalance leakages, thereby sustaining economic activity
The primary injections are investment, government spending, and exports
These inject additional spending into the circular flow, promoting economic growth and stability. Learn all about injections and withdrawals into the circular flow for a level economics including the effects of changes and the determinants of saving Leakage is often examined alongside economic injections Injections refer to additions of income into the circular flow from external sources, which stimulate economic activity
The primary forms of injections include investment, government spending, and exports.
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