Economics (AS & A Level) · May / June 2021 · Paper 31 · Question 27
9708Introduction to the circular flow of income
What would be an increase in leakages or withdrawals from the circular flow of income?
- Aincrease in government spending on anti-smoking campaigns
- Bincrease in spending on imports of luxury cars
- Cincrease in spending on transfer payments
- Dincrease in wages paid to government employees
As printed in the paper
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Correct answer: B. increase in spending on imports of luxury cars
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