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Q: Which best describes why taxes and savings are considered leakage factors?
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The role of savings in corporate finance?

Savings from the economic theory are considered as a leakage in the circular flow of currency thereby play an important role.When individuals save, those savings are used for lending those with deficit units to have their investments especially investment companies.


Is saving an injection into and investment a leakage from the income expenditure stream?

Savings are a leakage from the income expenditure stream because they drain on the economy


What are three factors to consider in creating goals for savings?

There are many factors that should be considered when creating a savings goal. Three of these factors include a realistic amount of income that you will have coming in, your anticipated expenditures that you will have going out, and a list of financial goals that you wish to achieve at various points.


What are the injection and leakage in the economy?

In terms of consumer spending, injection is spending by consumers on consumables (consumption) and leakage is spending by consumers on non-consumables (e.g.) savings; investment; taxation).


What describes a time deposit?

money in a savings account


What describes someones expected outcome from investing the stock market?

Making profit from savings, describes someone's expected outcome from investing in the Stock Market. Making profit from savings


What describes someone's expected outcome from investing in the stock market?

Making profit from savings, describes someone's expected outcome from investing in the stock market. Making profit from savings


What is the meaning of economics leakage?

In economics, a leakage is defined as something that leaves the economy (is a non-consumptive usage of income . Using the Circular Flow of Income, the common leakages in an economy are savings, taxation and imports.Savings are a leakage, because when an individual saves money, this means that this income isn't being used up as consumption, therefore is defined as a leakage. Taxation is also a leakage, because the government takes money out of the economy (away from tax-payers), meaning that people can't spend that money anymore since the government has the money now, therefore is a leakage.Imports are considered leakages, because since Australia has to pay foreign industries for the imports, money is going out of the country, and is therefore a leakage.


Which of these describes a time deposit?

Money in a savings account is an example of a time deposit.


Why is a savings account considered a financial investment?

Why is saving considered a financial investment


What factors can you use to evaluate a savings plan?

Your selection of savings play will be influenced by several factors including rate of return, inflation, tax considerations, liquidity, restrictions, and fees.


What are the key success factors in the dessert wine segment?

cost savings