When Indians buy foreign goods, this spending escapes as a __________ from the circular flow of income decreasing aggregate demand. Option 1: Injection. Option 2: Factor income Option 3: Export. Option 4: leakage.

The answer is 'leakage.'. View full solution:

CUET Economics - When Indians buy foreign goods, this spending escapes as a __________ from the circular flow of income decreasing aggregate demand. | PYQs + Solutions

CUET Economics 2026 13h May Shift 2

Macro

Easy

Injection.

Factor income

Export.

leakage.

✅ Correct Option: 4