which best describes why taxes and savings are considered leakage factors? they take money out of…
which best describes why taxes and savings are considered leakage factors? they take money out of households. they take money out of the economic system. they take money out of the economic sectors. they take money out of the financial sector.
Answer
Brief Explanations:
Leakage factors in an economic - system are elements that remove money from the circular flow of income. Taxes paid by households and businesses and savings by households are not immediately spent in the economy, thus taking money out of the economic system.
Answer:
They take money out of the economic system.