7
QuizMultiple Choice

Introduction to Macroeconomics

Question 7 • MO-Economics

Why are imports, which bring goods into a country, considered a leakage factor?

Answer
A
Imports do not generate domestic income.
B
Domestic industry loses ground as imports increase.
C
Imports are taxed heavily, which is a secondary leakage factor.
D
The money paid to producers of imports leaves the country.
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