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Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 25

9708Introduction to the circular flow of income

What does not change the level of withdrawals from the circular flow of income?

  1. Ahouseholds having more of their income taken in tax following a rise in the rate of income tax
  2. Bhouseholds spending more on imported cars following a currency appreciation
  3. Chouseholds taking money from their savings to spend on a celebration
  4. Dhouseholds transferring money from an account in one bank to a different bank

As printed in the paper

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Correct answer: D. households transferring money from an account in one bank to a different bank

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