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Question

Which of these is injection to circular flows of money?

A
Savings.
B
Consumption.
C
Domestic subsidy.
D
Investment.
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Solution
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Correct option is C. Investment.
Investment is the injection of circular flows of money
It means there is an addition of money to the circular flow of income from a source other than households and businesses.
It increases the flow of income.
Hence c is the correct answer.

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