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Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 27

9708Introduction to the circular flow of income

What could be used to offset a leakage from the circular flow of income?

  1. Aa reduction in domestic consumption
  2. Ba reduction in government expenditure
  3. Can increase in the rate of interest
  4. Dan increase in investment

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Correct answer: D. an increase in investment

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