Which term describes the investment, government spending and export revenues that add spending to the circular flow of income?

• A. GDP
• B. Equilibrium
• C. Economic Growth
• D. Injections

Answer: (D)

Injections are additions to spending in the circular flow of income. Investment, government spending, and exports all inject money into the economy by purchasing goods and services, which increases overall spending and income. This boost in spending helps raise aggregate demand and national income. These injections contrast with leakages—like savings, taxes, and imports—that remove spending from the flow. The balance between injections and leakages helps determine the level of national income: when injections exceed leakages, income tends to rise; when injections are smaller, income tends to fall.