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Leakages or Withdrawals from the circular flow Not all income will flow from households to firms directly. The circular flow below shows that some part of household income will be Put aside for future spending ie saved Paid to the government in taxes Spent on foreign made goods imported into the countryLeakages or Withdrawals From the Circular Flow Not all income will flow from households to firms directly. The circular flow below shows that some part of household income will be: ▪ Put aside for future spending, ie saved. ▪ Paid to the government in taxes. ▪ Spent on foreign made goods imported into the country
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