Which of the following is NOT a component of injections?

• A. Investment
• B. Exports
• C. Taxes
• D. Government spending

Answer: (B)

Injections are additions to spending that raise overall economic activity. They include investment by firms, government purchases, and exports—money coming into the economy from abroad when foreign buyers purchase domestic goods. Taxes do the opposite: they remove money from the circular flow by reducing households’ disposable income, acting as a leakage rather than an injection. So the item that is not an injection is taxes. Exports are indeed an injection, since they bring money into the economy.