Injections & Withdrawals into the CF

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Last updated 4:42 PM on 4/8/26
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4 Terms

1
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What components are considered Injections into the circular flow?

  • Increased government spending (G)

  • Increased investment (I)

  • Increased exports (X) 

2
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What components are considered Leakages into the circular flow?

  • Increased savings by households (S)

  • Increased taxation by the government (T)

  • Increased import purchases (M) 

3
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What does it lead to if Injections>Withdrawals?

Economic Growth and Increase in National Income

Visa Versa

4
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What is a usual result of a decrease in savings?

An increase in consumption