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.

Respuesta :

Answer: D "Taxes paid to the government have no direct effect on the economy".

Explanation: edmentum

The true statement is that Savings are a leakage in the circular flow of income.

What are savings?

This is the amount of money that is referred to as the income that was not spent or deferred income.

It is the amount that people keep for unforeseen events. Savings results in leak in demand and supply in the economy.

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