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In the circular flow of income model, some factors inject new money into the economic cycle, while others withdraw it. Which of the following is
In the circular flow of income model, some factors inject new money into the economic cycle, while others withdraw it. Which of the following is an injection into the circular flow of income? a) Investment by firms b) Savings by households c) Taxes collected by the government d) Imports by domestic firms. A US company develops a mobile game and grants a license for its use to a Chinese company for $1 million. This transaction would be recorded in which of the following accounts in the current account of the US's BOP? a) The merchandise exports account b) The merchandise imports account c) The services exports account d) The investment income account
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