In the circular flow of income model, which of the following is an injection?

In the circular flow of income model:

• Injections are additions to the flow of income. They include investment, government spending, and exports.
• Withdrawals (or leakages) are subtractions from the flow of income. They include savings, taxes, and imports.

Let's examine the options:

• A. Consumption: This is the spending by households on goods and services, forming the core of the circular flow, not an injection or withdrawal.
• B. Savings: This is a withdrawal because income is not spent on consumption within the domestic economy.
• C. Imports: This is a withdrawal because money flows out of the domestic economy to purchase goods and services from other countries.
• D. Export: This is an injection because money flows into the domestic economy from foreign buyers purchasing domestically produced goods and services.

Therefore, exports are an injection into the circular flow of income.

The correct option is D.
D) Export