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Economics (AS & A Level) · Oct / Nov 2025 · Paper 12 · Question 15

9708Introduction to the circular flow of income

What is an example of an injection into the circular flow of income in an open economy?

  1. Aconsumer spending on goods
  2. Bexpenditure on a government construction project
  3. Cspending by households on holidays abroad
  4. Drepayment of loans to commercial banks

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Correct answer: B. expenditure on a government construction project

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