Question

by spending money from taxes on _ and _ by transferring payments made to individuals through programs such as welfare, _ benefits, and _ benefits by providing subsidies to _ and by purchasing _ and _ from these firms savings and taxes are _ in the circular flow. investments and government expenditures inject these _ back into the economy the role of the external sector every open economy has foreign relations and deals with _ and _ goods and services. exports mean an _ of money (_) into the economy. imports mean an _ of money (_) when us citizens buy foreign electronics, that payment is a _ from the us economy. the purchase of a us good in a foreign country _ money into the us economy question list an example of each of the following: a leakage from a household to the financial sector _ an injection from government to households _ an injection from the financial sector to businesses _

Explanation:

In the circular - flow model of the economy, leakages are outflows of money from the circular - flow and injections are inflows. Savings are a leakage from households to the financial sector as money is taken out of immediate consumption. Government transfers like social security payments are injections from the government to households. Bank loans are injections from the financial sector to businesses. For the external sector, exports bring money (injection) and imports take money (leakage) out of the economy. Government spends tax money on public goods and services, provides transfer payments like unemployment and social security benefits, gives subsidies to firms and buys goods and services from them.

Answer:

• a leakage from a household to the financial sector: Savings in a bank
• an injection from government to households: Social security payments
• an injection from the financial sector to businesses: Bank loans