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Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 17

9708Introduction to the circular flow of income

What represents a leakage from the circular flow of income in an economy?

  1. Aa balance of trade surplus
  2. Ba government budget surplus
  3. Creduction in firm's spending on research and development
  4. Dreinvestment of a firm's profits

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Correct answer: B. a government budget surplus

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