Which of the following would not be considered leakage in the circular flow model? A imports
B transfer payments
C savings
D taxes

Respuesta :

The answer is

C. savings


Tabbey

Answer: B: transfer payments

Transfer payments would not be considered leakage in the circular flow model.

Explanation:

Transfer payments are payments or money made to an individual that has not performed any current service. It is also referred to as money given to a person who has not rendered any good for it. It is used by local, state and federal governments as a way of redistributing money to those in need such as the unemployed, aged, disabled people and so on.