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Injections (Circular Flow)

The main injections into the circular flow of income are:

  • Investment: This is when businesses spend money on new capital goods, such as machines and buildings.
  • Government spending: This is when the government spends money on goods and services, such as roads and schools.
  • Exports: This is when businesses sell goods and services to other countries.

Injections add money to the circular flow of income, which can lead to economic growth.