Leakages and Injections

Leakages: It refers to withdrawal of money from the circular flow. leakage refer to that part of income which does not pass through the circular flow of money and expenditure. it is, hence, not used in the production process. leakages lead to reduction in the flow of income.
Injections: They refer to instigation of money into the circular flow. injection refers to that part of income which does not belong to circular flow but is injected in it. this additional income does not get converted to expenditure immediately. they increase the flow of income.