Question

Imports are _______ the circular flow, and exports are ________ the circular flow. a. an injection...

Imports are _______ the circular flow, and exports are ________ the circular flow.

a. an injection into; an injection into

b. a leakage from; an injection into

c. an injection into; a leakage from

d. a leakage from; a leakage from

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Answer #1

Answer: b

Leakage is the form of financial outflow; therefore it suits with import (goods to come cash to go). Injection is the form of financial inflow; therefore, it suits with export (goods to go cash to come).

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