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True or false: The government sector is both a source of injections and leakages.True false question.TrueFalse

Question

True or false: The government sector is both a source of injections and leakages.True false question.TrueFalse

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Solution

True. The government sector is indeed both a source of injections and leakages. Injections are provided through government spending and investments into the economy. Leakages occur when the government collects taxes, which removes money from the economy.

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