An addition of spending to the circular flow of income is
A) An injection.
B) A leakage.
C) A surplus.
D) Household taxes.
Correct Answer:
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Q2: According to Keynes,if injections equal leakages,
A)The economy
Q3: Income not spent directly on domestic output
Q4: According to the Keynesian view of the
Q5: When the economy is at equilibrium,
A)Leakages equal
Q6: Disposable income is less than GDP due
Q7: If injections exceed leakages,
A)Unemployment will rise.
B)Prices will
Q8: The disposable income consumers receive is equal
Q9: If leakages exceed injections,
A)The economy will stabilize
Q10: Injections include
A)Business saving.
B)Taxes.
C)Exports.
D)Consumer saving.
Q11: Which of the following is a leakage?
A)Imports.
B)Investment.
C)Government
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