
Not all of present-day(prenominal) income is spent - both(prenominal) is saved. This presents a leakage from the circular flow. In addition to consumer spending, businesses besides carry out capital investment spending (e.g. on new plant & machinery and buildings). Investment demand is an injection of bills to the circular flow of income, as it does not originate from consumers menstruation income. Government spending on state provided goods ! and services is injected into the circular flow and taxation will leak from it. International variegate plays an increasingly important role in shaping the work of the British economy. The value of exports sold overseas will be injected into the circular flow, whilst spending by UK consumers and businesses on imported products stand for a leakage from the flow. (Goods and services are coming into the economy to satisfy domestic demand, but money to pay for them is stream out of the economy). Question 2 As money moves...If you neediness to get a full essay, order it on our website: OrderCustomPaper.com
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