Which best describes what injector factors bring to an economic system? factors of production imports consumers money

Money describes best as to what is brought into an economic system by its injector factors.

Explanation:

An injection takes place when currency is added into the economy from sources other than households and businesses, which are government spending, investment and exports. Such injections add to the national income which in return will give more money for businesses to manufacture and consumers to purchase goods and services. This will contribute to an increase in the circular flow.

Further explanation:

What includes under government spending are government consumption, investment and transfer payments.  It includes;

All expenditure incurred in terms of purchase of goods and services to satisfy the needs directly linked to its individuals or the needs of a community.

Purchase of goods and services linked to development of infrastructure and research.

Investments injected into the economy are mostly funded by loans. These come through financial institutions through the money of their depositors which in return are used to increase their lending capacity.

Exports bring in foreign currency into the economy hence treated as an injection. Vice versa, imports are treated as a leakage to an economy as it sends money into a foreign economy.

Learn more:

1. Injector factor - , by Jamuuj

2. Circular flow of income – by Soneyedesola44

Keywords

Economic injector factors, Government spending, Exports, investments, Circular flow, Foreign trade

The option D is correct.

Money is the best describes the injector factors bring to an economic system.  

Further Explanation:

Injector factors are those factors which increase the money supply in the economy. Leakage factors are those factors which decrease the money supply in the economy. If the government will increase government spending, it considers as the injector factor. If the import of the country will increase, it considers as the leakage factor.  

Justification for the correct and incorrect

A.

Factors of production: This option is incorrect.  

Factors of production do not increase the money supply, it increases the number of goods in the market. It is not considered as the injector factor.  

B.

Imports: This option is incorrect.  

Imports reduce the money supply in one nation of the economy. As the money paid to the other country. This is the leakage factor.  

C.

Consumers: This option is incorrect.

Consumers are not the injector factor. As money is spent by the consumer to get the goods. The producer with this amount, try to recover the cost. This can not be an injector factor.  

D.

Money: This option is correct.

Money is the injector factor, as the money is increased for a particular period in the economy. This can be done by increasing government spending. This is the correct option.  

Learn more:

1.Learn more about demand and supply diagram

2.Learn more about the demand curve

3.Learn more about demand and type of goods

Answer details:

Grade: Middle School

Subject: Economics

Chapter: Economic activity

Keywords:

injector factors, economic activity, economic system, factors of production, imports, consumers, money, money supply, leakage factor, macroeconomics, a particular period, and money supply.  

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