Injections to the Circular Flow of Incomes

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Injections to the Circular Flow of Incomes

Any structure that adds money to the circular flow of incomes, which is a simple model for the flow of money. Under the model, consumers buy goods and services from producers, which causes the producers to make money. The producers then use that money to pay consumers to make their products (for example, in factories). The consumers use that money to buy more goods and services and the cycle continues. Withdrawals from the circular flow include exports (in which money is brought into the economy), investments (in which previously unspent money is spent) and government spending.