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?
- Ahouseholds having more of their income taken in tax following a rise in the rate of income tax
- Bhouseholds spending more on imported cars following a currency appreciation
- Chouseholds taking money from their savings to spend on a celebration
- Dhouseholds transferring money from an account in one bank to a different bank
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Correct answer: D. households transferring money from an account in one bank to a different bank
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