In the circular flow of income, an increase in savings causes

In the circular flow of income, an increase in savings by households means that they are consuming less of their income and keeping more for the future. This decrease in household consumption will cause a decrease in the demand for goods and services, which will lead to a decrease in production, and eventually a decrease in the income stream. As a result, there may be a decrease in imports since households will be consuming less, but there will also be a decrease in exports since the decrease in production will mean that there are fewer goods and services available to export. Therefore, the correct answer is a decrease in the income stream.