why are imports, which bring goods into a country, considered a leakage factor?\nimports do not generate…
why are imports, which bring goods into a country, considered a leakage factor?\nimports do not generate domestic income.\ndomestic industry loses ground as imports increase.\nimports are taxed heavily, which is a secondary leakage factor.\nthe money paid to producers of imports leaves the country.
Answer
Brief Explanations:
In the circular - flow of income model, imports are considered a leakage because the money spent on imported goods goes to foreign producers, thus leaving the domestic economy.
Answer:
The money paid to producers of imports leaves the country.