If aggregate income equals aggregate expenditure,which of the following will not be true?
A)Leakages from the circular flow must equal injections.
B)Consumption plus investment plus government spending plus net exports must equal disposable income plus net taxes.
C)Saving must equal investment.
D)Saving plus net taxes and imports must equal investment plus government purchases and exports.
E)Saving must equal investment if the government's budget is balanced and exports equal imports.

Question

Quizplus · Accepted Answer

When aggregate income equals aggregate expenditure, saving does not necessarily equal investment unless the economy is in equilibrium with no government deficit or surplus and balanced trade.

If Aggregate Income Equals Aggregate Expenditure,which of the Following Will