**Question:**Which of the following is true of the circular flow diagram?**Options:**- In a circular flow diagram, saving is a leakage and investment is an injection.- In a circular flow diagram, saving is an injection and investment is a leakage.- In a circular flow diagram, saving and investment are both leakages.- In a circular flow diagram, saving and investment are both injections.**Explanation:**The circular flow diagram is a model that illustrates how money and goods flow through an economy. Generally, savings are considered leakages from the flow because they represent income not spent on goods and services. Investments, on the other hand, are injections, as they introduce additional spending into the economy, often funding business activities and economic growth.

option first is right answer In circular flow digram, saving is leakage and investment is an…

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Which of the following is true of the circular flow diagram?

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