Depreciation

[Abhinav]

Hi
Can someone tell, if depreciation is a leakage from the circular flow of income?
I don't think so but I read this in Schaum's Series for Macroeconomics

Depreciation is a leakage from the existing capital stock. Is it also from the circular flow of income?

[mrittik]

Nope. The leakage from Circular flow diagram - Savings, taxes & Imports. Injection are - G, I & X