In the circular flow of income model, the outflow variables represent

In the circular flow of income model, the outflow variables represent the leakages from the economy. These are the ways in which money flows out of the economy and includes savings, taxes, and imports. When households save money, it is not spent in the economy and is considered a leakage. Taxes are also a leakage because they are paid to the government and are not spent in the economy. Finally, imports are considered a leakage because they represent money flowing out of the economy to purchase goods and services from other countries.