injections


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injections

any expenditures on domestic goods and services originating from outside the HOUSEHOLD sector. In the basic CIRCULAR FLOW OF NATIONAL INCOME, all spending is done by households (CONSUMPTION expenditure). In the extended circular flow of income model, domestic output is also purchased by businesses, government and overseas buyers. Thus, INVESTMENT, GOVERNMENT EXPENDITURE and EXPORTS, respectively, constitute ‘injections’ into the income-spending flow. Compare WITHDRAWALS.