Question

C+I+G+X+S+TM
Which one of these does leakage comecunder
Answer
And what is T
Answer
Is taxes paid by household and businesses considered a leakage
Answered by GPT 3.5
Savings (S)
Answered by GPT 3.5
T represents taxes paid by households and businesses to the government.
Answered by GPT 3.5
Yes, taxes paid by households and businesses are considered a leakage in the context of the circular flow of income and expenditure model. Taxes reduce the disposable income of households and profits of businesses, thereby diverting money away from consumer spending and business investments, which can be considered a leakage from the circular flow of income.