which best describes why taxes and savings are considered leakage factors?\nthey take money out of…
which best describes why taxes and savings are considered leakage factors?\nthey take money out of households.\nthey take money out of the economic system.\nthey take money out of the economic sectors.\nthey take money out of the financial sector.
Answer
Brief Explanations:
In economic systems, leakage factors reduce the flow of money. Taxes paid by households and businesses and savings by households are removed from the circular - flow of income and spending in the economy. They are not immediately used for consumption or investment within the economic system.
Answer:
They take money out of the economic system.