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In the circular flow of income, an increase in savings causes

Economics
JAMB 2009

In the circular flow of income, an increase in savings causes

  • A. an increase in imports
  • B. a decrease in the income stream
  • C. an increase in household consumption
  • D. a decrease in exports
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Correct Answer: Option B
Explanation

An increase in savings will lead to a reduction in the stream of income available for consumption in the household

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