27720
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Introduction to Macroeconomics

Question 27720 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

The government sector collects taxes, which are considered .

Answer
A
leakages
B
injectors

Explanation

Taxes are leakages from the circular flow of income because they take money out of households’ and businesses’ spending. The correct choice is “leakages”; government spending, by contrast, injects money back into the economy.

AI-written and checked against the verified answer.

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