Which of the following statements is true regarding leakages and injections?
A)Government transfer payments must equal taxes because one is a leakage and one is an injection.
B)Imports must equal exports since both are leakages.
C)Saving must equal investment for the economy to be in equilibrium.
D)Since leakages equal injections,aggregate income equals aggregate expenditure.
E)Net taxes are an injection into the circular flow; net exports are a leakage.

Question

Quizplus · Accepted Answer

Since leakages equal injections, aggregate income equals aggregate expenditure.

Which of the Following Statements Is True Regarding Leakages and Injections