Based on the macroeconomic concept, it is True that the financial sector channels savings back into the spending stream.
Financial Sector is a term that is used to describe the economic sector that provides financial services to people and corporations.
Generally, the financial service sector comprises a variety of financial firms such as banks, investment houses, lenders, finance companies, real estate brokers, and insurance companies.
In the scheme of things, financial sectors like banks channel savings into the spending side through loans for business or stock trading.
Also, real estate brokers and insurance companies channel the savings to the spending stream through real estate investments, stock trading, and insurance payments accordingly.
Hence, in this case, it is concluded that the correct answer is True.
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