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Which statement is true?

ASavings are a leakage in the circular flow of income.
BHouseholds pay wages to businesses.
CExports are leakages in the circular flow of income.
DTaxes paid to the government have no direct effect on the economy.

Verified Answer :

the true statement would be: d) Taxes paid to the government have no direct effect on the economy.

The tax that paid to the government will have indirect effect on people's life, such as used for military budget, building public service that not all people use, and distributed to welfare

a) Savings are a leakage in the circular flow of income.