Answer: B: transfer payments
Transfer payments would not be considered leakage in the circular flow model.
Explanation:
Transfer payments are payments or money made to an individual that has not performed any current service. It is also referred to as money given to a person who has not rendered any good for it. It is used by local, state and federal governments as a way of redistributing money to those in need such as the unemployed, aged, disabled people and so on.
