Leakages from the income-expenditures stream are:

A. consumption, saving, and transfers.
B. saving, taxes, and transfers.
C.saving, taxes, and imports.
D. imports, taxes, and transfers.

To identify the leakages from the income-expenditures stream, we need to understand what constitutes a leakage. In economics, a leakage refers to any outflow of funds from the circular flow of income that reduces the total spending in the economy.

The options provided are:

A. Consumption, saving, and transfers.
B. Saving, taxes, and transfers.
C. Saving, taxes, and imports.
D. Imports, taxes, and transfers.

Let's analyze each option:

A. Consumption, saving, and transfers:
Consumption refers to the spending on goods and services by households. While consumption does contribute to the outflow of funds from the circular flow, it is not considered a leakage since it is a part of the total spending.
Saving refers to the part of income that is not spent on consumption but is instead kept aside for future use. Saving is considered a leakage since it reduces the current spending in the economy.
Transfers refer to the payments made by the government to individuals or other entities without any corresponding output of goods and services. Transfers, such as welfare payments or unemployment benefits, do not add to the total spending and are considered leakages.

B. Saving, taxes, and transfers:
Saving, as discussed earlier, is a leakage.
Taxes refer to the compulsory payments made by individuals and businesses to the government. While taxes reduce the disposable income available for consumption, they are not considered leakages since they are used by the government to finance public goods and services rather than being removed from the economy.
Transfers are also leakages as mentioned earlier.

C. Saving, taxes, and imports:
Saving and transfers are leakages, as explained.
Imports, on the other hand, are not considered leakages. Imports represent the purchase of goods and services from foreign countries and are considered a part of the total spending in the economy. They do not reduce the total spending within the domestic economy.

D. Imports, taxes, and transfers:
As mentioned, imports are not considered leakages.
Taxes and transfers are indeed leakages.

Therefore, among the given options, the correct answer is B. Saving, taxes, and transfers.

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