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Why is saving treated as a …

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Why is saving treated as a leakage from the circular flow of income

    • Posted by Hardeep Singh 6 years, 2 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Astha Gupta 6 years, 2 months ago

    Because leakage refers to withdrawal of money from the economy and ...............in case of saving people withdraw the money from the circular flow and keep it at as a save......... Means that money is now not involved in circular flow of money......... hence it is termed as leakage.......

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